Managing Risk
The success of day trading will be purely a function of one's ability to manage risk. Whether planning to use a discretionary strategy or one that is purely systematic, the key to your success will be a business plan that will make money. The most efficient way to start the process is to determine how much money one is willing to risk.
Systematic approach to Trading
A systematic approach to trading means is to avoid overriding a trading alert. Using this approach removes some of the human element which can interfere with the strategy’s success. The risk management of a systematic approach can be back tested to determine if the approach worked in the past.