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One of the best situations you can find yourself in as a day trader is when you have eliminated the question of, “will I be making money today?”. Given the fact the stock market makes no guarantees, each day you start with zero certainty that you’ll, actually, be making money. With that being said, when you can get a few winning trades under your belt, you can begin to implement some very basic money management techniques that’ll ensure you “stay green”. Risk management is the most important skill set a trader much have, and part of managing risk is to ensure you remain green when you deem it is time to make that decision. When this is the case, you get to play the fun game of, “do I stay green, or do I get even more green?”. This is a very stress free situation as you know that no matter what happens, you’re going to still be green, even if your next trade is wrong. This oftentimes can lead to being able to hold onto winners longer and letting things work in your favor that much more. Let me show you what I mean!
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