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Must-Know Strategies for
Limiting Losses When Day Trading

 

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Boris Dzhingarov

   

Day Trading How to cut losses

As you become a seasoned day trading investor, you'll quickly notice there are literally thousands of strategies to follow. Some of these strategies will be a good fit for you while others will prove to be of no help at all. The goal, of course, is to minimize your trading risks while maximizing your profit potentials. What works for one investor doesn't always work for the next day trader, though. It's imperative to see which strategies suit your weaknesses and strengths the best.

One strategy that every trader should follow is following a strict three percent daily maximum. This means you will never risk more than three percent of your account balance on a single day. More so, you won't risk more than one percent of your account balance on a single trade. Expecting losses is something to prepare yourself for, but with the three percent daily maximum, you minimize your loss potential.

Sticking to a stop-loss strategy is a good idea as well. Your stop-loss amount is the amount of money you are willing to lose on a single trade. Once you hit your stop-loss amount, you exit the trade and move on to a different one. Ideally, you'll want your stop-losses to be somewhere around 1.5 times from the current high-to-low range.

Check out our helpful infographic to learn more about limiting your losses when day trading. As you implement different strategies, you'll be able to pinpoint ones that optimize your earning potential.

 

 

Boris Dzhingarov graduated University of National and World Economy with major marketing.
He writes for several sites online such as Semrush, Tweakyourbiz and Socialnomics.net.
Boris is the founder of Tech Surprise and MonetaryLibrary.

    

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