Day trading strategies: the complete guide with all the advanced tactics for stock and options trading strategies. Find here the tools you will need to invest in the forex market

 
Managing Your Day Trades
It is always intriguing when two day traders choose the same stock - the one
short and the other long.
More often than not, both traders become profitable, proving that trader
management and experience are more important than the stock and the
strategy used by the trader.
Remember, your trade size will depend on the price of the stock and on
your account and risk management. Beginners in day trading are
recommended to limit the size of their shares below 1000.
For example, you can buy 800 shares, then sell half in the first target. You
can bring your stop loss to break even. Then you can sell another 200 in the
next target. You can keep the last 200 shares until you stop. You can always
maintain some shares in case the price will keep on moving in your favor.
IMPORTANT: Professional day traders never risk their shares all at
once.
They know how to scale into the trade, which means they buy shares at
different points. They may start with 200 shares and then add to their
position in different steps. For instance, for an 800-share trader, they could
enter either 400/400 or 100/200/500 shares. When done properly, this is an
excellent way to manage your trades and risks. But managing the position
in the system can be overly difficult. Many newbies who may attempt to do
this could end up over trading and may lose their money in slippage,
commissions, and averaging down the losing stocks. Rare is the chance that
you may scale into a trade. Still, there are times that you can do this,
especially in high-volume trades.

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However, you should take note that scaling into a trade increases your risk
and beginners can use it improperly as a way to average down their losing
positions. We have discussed this for the sake of information, and this is not
recommended for beginners.
Even though they may appear the same, there’s a big difference between
averaging down a losing position and scaling into a trade. For newbies,
averaging down a losing position can wipe out your account, especially
with small accounts that are not strong enough for averaging down.

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