[ad_1]
Trading can be a risky activity. There is no doubt about that! However, so is driving a car to work, but the risks of getting from A to B on four wheels are well understood and are managed accordingly, to the point where we do not think twice about getting behind the wheel.
And in the same way, provided a trader is disciplined in his approach to the job at hand, and understands the associated risks of the work, those risks can be managed and a trader could well be on his way to good profits.
On the subject of risk in day trading, it is almost unique, in that it can be learned and practiced with absolutely no financial risk at all. One way is by means of paper-trading – that is – trading using freely available simulation software. Thus in the same way a trainee airline pilot won’t be let loose into the skies without having learned and rehearsed their skills in a simulator, so a new trader can employ the same technique before they start trading real money. “Sim-trade” before you give up the day-job.
Most of us may rely on experience as a teacher, reading the charts and relying on gut feel. Your experience may be a master teacher but it can be very costly and if we go through too many failing experiences, we will be out of the game altogether. We need to understand the risks involved in every trade to succeed.
Knowing your risks and knowing the right information in the right time is the key to success or failure. Note that in trading, sometimes that knowledge can be hard to find or intentionally kept secret.
It takes a lot more than getting lucky and common sense to break even in day trading. But who wants to just break even? If you are hitting a bad trade day, why not take a break and look into day trading tutorials. These tutorials are one way traders can shorten the learning curve and have greater odds of hitting more than losing.
[ad_2]
Source