How do you manage your risk when day trading?

[Pablo]

Do you have specific rules or strategies that you follow to minimize losses and maximize profits? And how do you adjust your approach when market conditions change?

[[Deleted]]

I use hedging to minimize losses (or to turn losses to profit), for maximimizing profits I use pyramid trading.

[[Deleted]]

Ivo55555 #:
I use hedging to minimize losses (or to turn losses to profit), for maximimizing profits I use pyramid trading.Its i

Day trading usually is done when high leverage is involved, so i will have two advices:

1. When you trade with leverage : Its very hard to manage risk. Usually people bet with 100% risking, as there is no way to manage better risk or sometime people want to risk 10% to 20% of cap in one trade. If you think to trade with 2% risk then there is no use of leverage.

2.  When you dont trade with leverage : All risk management possibilities are opened here.  You can use averaging, pyramiding and many other methods, take partial entries, exit or hedge also but only possible when you trade without leverage.

I am a futures day trader, I trade on very high risk so I bet the full capital as stop loss, If my liquidation price is 100 then I add Stop loss at 101 to avoid liquidation fee charged by broker.

however I am using 10% of risk because 90% of cap i keep on Spot account and 10% on futures.

[[Deleted]]

Suppose you want to risk maximum 1% of account balance on each single trade.

If you use a leverage of 1:50 your stop should not be more than 2% away from entry price in order to lose maximum 1% of the balance on that trade.

Leverage is a neutral instrument that if used in the right way can work really well..

Higher the Leverage lower should be in % term your SL level to keep the margin isolated otherwise you’ll go into cross mode..

[Yashar Seyyedin]

Pablo Jaguanharo Carvalho Pinheiro:
Do you have specific rules or strategies that you follow to minimize losses and maximize profits? And how do you adjust your approach when market conditions change?

I find very few opportunities trading daily. Maximum two opportunities in a week. Usually with high volatility news releases. risk per trade 0.25%