First of all, what exactly is day trading? According to Wikipedia’s definition, Day Trading refers to the practice of buying and selling financial instruments (such as stocks, futures, options, etc.) in order to generate a profit within the same trading day. Traders that participate in day trading are called active traders or day traders.
Day trading, like any other business professions, needs profound training, decent planning, and lots of practice. Thousands of beginners enter the day trading business every day in hope of making quick money. Yet only a few of …

Yesterday, I came across an article by Harvey Walsh on Money Management rules for day traders. I was deeply impressed by it and thought that that was the piece of puzzle I missed in the game. Here is the link to the article.
Position sizing means that you first should determine how much money you can afford to lose for a single day, and how many trades do you plan to make each day. Assume every trade you entered is a loosing trade, then determine how much money you can afford …

I finished trading today at a little bit over 11:30am (which is my mandatory latest finish time). I did OK, earned $38 after commission.
The good thing is: I didn’t loose money. The bad thing is: I didn’t follow the rule of risk management.
I have to create a mind map and put all my rules for trading in it. Risk management rules are deadly important. They guide me where I should enter a trade, what is my exit strategy, when I should be able to trade other stocks, etc.
I didn’t follow …