The best way to reduce risk when Daytrading

How To Reduce Risk When Daytrading

You’ve probably been scouring the internet and thumbing through Youtube videos trying to find the best way to reduce your risk when day trading.

New traders are told time and time again that risk management is vitally important and like most new day traders… they don’t listen.

Except you. Because you are here.

Classical Theories of Risk Management

Investing.com features a list of classical risk management techniques for active daytraders. In it they list some key takaways that may seem obvious to you but… without practice, you need to keep these features of risk management on the front of your mind while you are in the trenches daytrading.

Investing.com states”

Risk management helps cut down losses. It can also help protect traders’ accounts from losing all of its money. The risk occurs when traders suffer losses. If the risk can be managed, traders can open themselves up to making money in the market.

investing.com

KEY TAKEAWAYS
1. Trading can be exciting and even profitable if you are able to stay focused, do due diligence, and keep emotions at bay.
2. Still, the best traders need to incorporate risk management practices to prevent losses from getting out of control.
3. Having a strategic and objective approach to cutting losses through stop orders, profit taking, and protective puts is a smart way to stay in the game.

investing.com

This is sound advice and should be taken extremely seriously when placing positions in the market.

But what is there was a better way to reduce your risk and exposure during a trading session?

Imagine…

and ultimate way to guarantee you will not loose any money day trading.

The Best Way To Manage Risk in Daytrading

Put simply, it is to trade someone elses money!

Prop trading is a thing and entry into some of these firms require years of education, training and personal capitol. Go ahead and lookup some prop trading firms in your area.

A simple search will lead to a plethora of local and international digital firms.

Some, in fact, most, require you to put up your own money for a portion of the buying power.

Others will hold you personally accountable for the losses. You pay.

There is one firm, however, that will not ask for either.

TopstepTrader is that very firm.

We have written an extensive overview of why you should trade for TopstepTrader in the past. Here are the main points of that work.

TopstepTrader funds traders who can successfully pass their unique evaluation, called the Trading Combine®. The Combine is a real-time, simulated account using any of 10+ preferred platforms. If you can follow the risk criteria and meet the profit target in the Combine, you are eligible to trade real capital in a funded account where you keep up to 100% of your profits.

stocksforexfutures.com

You heard that correctly.

You can keep up to 100% of the profits you make.

What’s the catch?

I’ll tell you:

1. You have to pass a trading evaluation for the privilege’s of being funded. And that costs a couple hundred bucks. But, you gain the potential to trade with hundreds of thousands of risk free capitol in Futures Markets or Currency Markets.
2. They offer only Futures and Forex market funding at the moment.
3. They will eventually keep 20% of the withdrawals you make from the account after you withdraw a certain threshold of profits.

Other features of becoming a succesffully funded trader with this firm are:

1. You can trade from home or wherever you want.

2. You get to keep 80% of the profit that you make. That is an INCREDIBLY IMPRESSIVE PROFIT SPLIT for any proprietary trading firm. Most would start you off at 65% or less. After income tax, that doesn’t amount to much. (UPDATE: Topstep Trader is now allowing their traders to keep 100% of their profitsFutures Trading up to $5000!)

3. You can trade whatever Market you want. As long as you pass your combine trading with your desired market. Adding more markets in the future to your trading is an option.

4. Withdraw your profits every week.

5. No Capital Contribution! Upon successful completion of your Trading Combine you are refunded the Combine fee. Your account gets funded with none of your own capitol at risk.

6. Potential for a new quality of life and a full time career Day Trading. This is the whole point right? This is the ultimate goal. To transition your career into Day Trading and live the quality of life that we all believe is reserved for the privileged elite.

stocksforexfutures.com

Try your luck with your own money or another prop firm if you like. But the very least you could to to guarantee you are making the right choice is to try out their trading platforms for a trial period and make sure this move is right for you.