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Day Trading — Placing A Huge Emphasis On Loss?
I’ve spoken about those “lightening in a bottle trades” that you’ll come across every once in a while. I’m talking about trades where the price spikes up $20+ per share in a single day. You may have the pleasure of capturing the trade from the bottom or get a large portion of that profit. With just 5 shares in a stock that shoots up $20+ can bring you over $100 in a single day. This means if your account size is $100, your account could double in one day.
Don’t expect this to happen every day because chasing these trades will have you go broke very quickly trying to anticipate the direction a trade will go, HOPING for the moment you have a large portion of shares in a trade that goes to the roof.
In the beginning you will suffer more losses than wins and this is why you may want to place an emphasis on your losses first.
Your impatience will get you into trades just to be in the game and not have to wait around doing nothing. You may stay in trades too long, HOPING for the trade to go in your favor after a big drop in price. If this is you, you may want to go into trades with smaller shares and train yourself to take quick losses before the price drops too far.
If your account size is only $100, going in with 1 share may be wiser if you have a hard time selling quickly. You want to train…
