# Risk management is important, you should know how to do risk management. when a beginner comes to the stock market they don't know about risk management so he just makes losses.
- you can learn about the risk and reward ratio so when you lose you will lose less and when you make you make a big profit.
key point - when you are in profit make a big profit but when your trade is not in your favour then lose small. This is the key point to be in the game of trading till the end.
# Trade in those stocks which has High volume in day trading because if you trade with low volume stocks then you will not be able to buy/sell according to a suitable price.
# Money management is also important in day trading.
- Do not trade with all your capital.
- Track your trades, your profit and your loss.
- position size is important, increase and decrease your position according to market volatility.
# Stop loss is a must in day trading. Many new traders do not put stop loss in trading and after that result will be too bad for them, they lose a huge amount in one shot.
NOTE - Make a habit to set stop loss small, if you follow it then you can play many trades in day trading.
# Chart pattern - learn about chart patterns like rounding pattern, bullish/bearish wedge, channel, double bottom and double top, flag pattern, head and shoulder pattern etc.
these all chart patterns will help you to know the probability of market direction.
# Find high liquid stocks - when you trade in highly liquid stocks then there are fewer chances of manipulation. And you can trade with a large quantity easily.
# Write down your mistakes, observe your action and your emotions during the live market
# Cut your losses and ride your profits.
# Understand Traps in charts, Falls breakout is the main cause of retailer's loss.
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