The Truth About Day Trading pdf torrent

Risks in Day Trading

When trading shares or property, assuming you are not leveraged, you can only
lose your initial investment if you make a poor trading decision and price moves
against you. Trading futures, on the other hand, carries with it the risk of losing
more than your original investment because you are leveraged 100% of the time.
However, the risk is easily eliminated by setting, and sticking with, a suitable stop
loss strategy. This strategy is implemented at the time of entry. It is also essential to stay in contact with your trade. As intraday traders, that should be no problem.
Using these two simple rules, a sound stop loss strategy and monitoring your
position, a trader is able to participate in highly liquid and volatile markets with
minimal outlay and at no greater risk than trading stocks or property.

What is Leveraging?

Trading futures with leverage positions enables your money to work much more
efficiently. You are able to control a large amount of capital for a fraction of the
actual cost, effectively using a down payment, or ‘margin’ to trade. When you sell
a long position, or cover a short, you collect or pay the difference between the
entry and exit prices without having to outlay the entire contract’s value.

Why is Day Trading a Great Tool to Financial Freedom?

It doesn't matter where you live or what hours you keep, there are markets trading
somewhere every minute of every day, five days a week. Readily available
internet technology allows virtually anyone to trade on an equal footing with the
'big players'. In fact, the days of large financial institutions 'having an edge' are
long gone. You can now see what they see as they see it. You can take the same
trades they take. But you have one very big advantage... you're small!