During a trading day, a financial asset may be acquired and sold at once or multiple times. Taking advantage of slight price adjustments can be profitable if done correctly. However, it might be challenging for beginners and anyone who has to follow a well-thought-out approach. Beginner-friendly ten-day trading techniques are covered in this article. The quotex corretora then discusses how to keep your losses under control when day trading.
It’s crucial to specify in detail how you’ll reduce your trade risk. A stop-loss order, for instance, is made to prevent losses on a position in security. A stop-loss can be set below the most recent low for long positions and above the most recent high for short positions. Volatility may also serve as a foundation.
Two further stop-loss orders could be set:
1. Place an actual stop-loss order at a price level that fits your risk tolerance. This level would equal the maximum money you could tolerate losing.
2. Place an imaginary stop-loss order where your entry criterion would be broken. You will promptly quit your position if the transaction takes an unforeseen turn.
It’s a good idea to decide on the most significant daily loss you can bear. As soon as you reach this stage, stop working and enjoy the remainder of the day. Respect your plan. The next trading day is, after all, tomorrow.
Your stop-loss orders’ locations and trading methods have both been defined. You may assess the potential plan to see if it fits your risk tolerance. If the strategy exposes you to too much risk, you must alter it somehow to reduce it.
If your strategy works, trade in a demo account in real-time. If you take profits over two months or more in a simulated environment, proceed with day trading with natural capital. If the strategy isn’t profitable, start over.