Comments on: Day Trading – Should you Stay Away? http://paper-trader.com/blog/2009/10/day-trading/ The Smart Way to Learn Wed, 21 Oct 2009 23:13:00 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: Richard http://paper-trader.com/blog/2009/10/day-trading/comment-page-1/#comment-4 Richard Wed, 21 Oct 2009 23:13:00 +0000 http://paper-trader.com/blog/?p=243#comment-4 Hi Julie, yes in simple terms the more leverage you have the greater the risk. But this is not the only factor. There are risk protection strategies like Stop Losses and Capital Protection techniques that you need to understand before you start. For example, there are ways to use equity options to protect the capital in stocks you buy. So even if the stock price falls you are protected. But most people use some sort of stop loss to protect against excessive loss. To start I suggest you simply begin learning how the stock market and all the instruments work. There's a ton of information around for free. Hi Julie, yes in simple terms the more leverage you have the greater the risk. But this is not the only factor. There are risk protection strategies like Stop Losses and Capital Protection techniques that you need to understand before you start.

For example, there are ways to use equity options to protect the capital in stocks you buy. So even if the stock price falls you are protected.

But most people use some sort of stop loss to protect against excessive loss.

To start I suggest you simply begin learning how the stock market and all the instruments work. There’s a ton of information around for free.

]]> By: Julie http://paper-trader.com/blog/2009/10/day-trading/comment-page-1/#comment-3 Julie Tue, 20 Oct 2009 23:05:43 +0000 http://paper-trader.com/blog/?p=243#comment-3 Are the risks for day trading the various insruments widely different. I mean is there a lower risk one to start with? Are the risks for day trading the various insruments widely different. I mean is there a lower risk one to start with?

]]>