13 take-aways to a burning question “Can you make a living trading stocks?”
- • Take time to master the skill.
- • Take advantage of volatility.
- • Observe risk management.
- • Use proven trading methods.
- • Remember – a trader is not an investor.
- • Buffer 1 year income – untouched.
- • Have a heart of steel – emotionless.
- • By nature, losing is more than winning.
- • The trick is, lose small win big.
- • Set up stop loss and profit target.
- • Keep risk:reward (loss:win) ratio < 0.67.
- • Set wins 1.5x more than looses.
- • Set risk (potential loss) to < 1% of capital.
Source:
- http://stocks.about.com/od/advancedtrading/fl/Is-It-Possible-to-Make-a-Living-Trading-Stocks.htm
- http://daytrading.about.com/od/tradingsystems/fl/Day-Trade-Better-Using-Win-Rate-and-Risk-Reward-Ratios.htm
- http://daytrading.about.com/od/daytradingbasics/fl/How-Much-Money-Stock-Day-Traders-Make.htm
Further reading:
- http://daytrading.about.com/od/Day-Trading-Strategies-for-Any-Market/fl/Engulfing-Candle-Day-Trading-Strategy.htm
- http://daytrading.about.com/od/tradingpsychology/a/IncreaseTarget.htm
- http://daytrading.about.com/od/daytradingglossary/a/StopLoss.htm
- http://daytrading.about.com/od/Day-Trading-Strategies-for-Any-Market/