risk and how do we reduce risk while we're day trading what's all about
talking about day trading risk in this video so stay tuned so if you want to
learn more about day trading you want to learn more about the stock market go
ahead and hit that subscribe button if you're a longtime subscriber thanks for
watching so I wanted to talk about risk today and one of the reasons I was
talking about is because people keep commenting about risk like wow this
guy's risking a lot and it just seems like he's gambling that everything that
he's doing is gambling's buying these stocks that are already going up big and
he's selling into the puss or whatever he's doing it looks risky or I see
people that comment and say how yeah but it could have went down you bought it at
$3 and you sold it at 3:20 but who knows it could have went to 280 and yes that's
part of it when I'm day trading when we are day trading we're managing that risk
we're looking to minimize that risk ratio and right now I feel pretty good
like I did minimize that so this week I only had one trade that I lost on and
I'm not trying to act like I'm some kind of genius or I'm a guru but what I'm
trying to say is what we're looking for is stocks that have a lot of momentum
socks that have volume stocks that have news and stocks that are moving also
another thing that's very important if you see the way that I trade you see my
style is I'm normally trading right there at a pen I'm looking for that
first 30 minutes while the market is hot while the people are chasing wild people
are got that FOMO and I'm really looking for those big moves in the first 30
minutes I'm not waiting till 2 o'clock to get aggressive because at that point
a lot of the day traders that trade in the morning are gone those bigger moves
might not happen there's not that support there's not that FOMO that's
kicking in there so in the morning right away it's risky but the thing is you're
looking for those stocks that have those key resistance the key support areas
looking to either buy a dip looking to buy on that resistance break and we're
expecting that there's other buyers out there there's other people are gonna be
chasing it every trade we go into there's going to be risk but it's all
about managing that risk it's all about looking for opportunities with lower
risk and that's really what day trading is all about it's not just I'm gonna win
win win it's managing risk constantly so if I make 10 trades and I only lost on
one trade this week I think I've made 12 trays this week and I only had one lose
that's a pretty good window loss ratio people will comment and say yeah but you
take profit faster yeah you did this or that and that's part of it there's gonna
be those trades where yeah I was in the red for a little bit they came back up I
took profit it went higher later but for me it's all about taking profit it's all
about just getting into these trades I see these opportunities managing that
risk I'm not just buying any stock that I see that's moving around I'm looking
for stocks that have good news or stocks that have volume socks and a bad news
that are crashing I'm really looking for that place where there's a lot of buyers
that orders a lot of sellers I'm looking to see what other people will be trading
I'm not just seeing any stock out there and go all the stocks going up I'm gonna
chase it I'm gonna jump in on it I'm looking for those key areas I'm looking
for the resistance break you look back at the daily chart I see there's
resistance there it breaks through that resistance the stocks going to higher
the volume is increasing that's a good sign for me to get in and that's all
about managing your risk every trade that I make there's a possibility that I
could lose obviously that's that's part of day trading but for me I'm looking
for trades that I know hey I'm probably not gonna lose in this
trade because it looks really strong there's a lot of volume there's a lot of
activity there's a lot of talk about this stock so that's what I'm looking
for us gonna minimize the chance of me losing so if I make 12 trades and I only
lost on one trade this week that's a pretty good indicator that I have some
kind of idea that I'm looking at the right stocks a lot of the stocks that I
did buy a lot of socks that I sold ended up going higher and higher after I sold
it's all about managing the risk anything you do in life is risky if you
start a business it's risky you go to college it's risky you're gonna spend
money on all these different things you're going to invest your time invest
your money in these different business ventures so there's a chance that you go
to college you get a business degree and you can't get a job you have $200,000
and loans and you can't pay those loans because you don't have a good job and
there's no jobs out there whatever your problem is there's a risk to anything
that you do in life day trading obviously the risk is much higher but
the thing people don't understand is that it's a lot about emotions it's I
think it's literally all about emotions obviously there's a skill to it but when
it comes down to it emotions will ruin the best trader in the world so your
emotions allow you to always cut your losses fast your emotions allow you to
let the stock run higher and higher and you take profit you
a dollar two dollars that's amazing so it really comes down to emotion emotion
managing risk so risking emotion risking emotion but when it comes down to it
we're always risking a little bit to make a little bit more so if I get into
a trade and I'm like hey my stop-loss is gonna be ten cents lower I need to cut
my loss no matter what once I see that stop-loss hitting this isn't looking
like I want it to look this isn't looking good I'm gonna get out right
here you're gonna get out on the stocks and
go higher and higher you're gonna sit there go oh why did I get out and it's
gonna suck but then there's gonna be those days where you're gonna get out
because you had a feeling that it didn't look that good that I started to die
down or you thought it might crash and it's going to crash and you're gonna
pick Wow that's perfect timing I sold before the
crash I felt like it was going to crash I felt like it was getting a week there
and I sold and it worked out for me for me it's really just all about figuring
out that middle ground there's gonna be stocks like get out early on that go
higher there's gonna be stocks like get out early on that go lower and I gotta
figure out that risk to reward ratio I gotta figure it out you know my emotion
can I let the stock go higher and higher can I get out of a loss fast
I had one trade this week the one loss they had was way too big so I lost $100
on that one trade I think it was like a 30 cent drop there I didn't cut my loss
fast enough I was being stubborn I was being greedy
I thought the stock might come back up higher and that's you know hoping and
praying it actually ended up coming back up a little bit but I should have cut my
loss a lot faster so it's all about managing risk it's all about thinking
every single trade going into it obviously there's going to be risk there
but can I manage that risk can I cut my loss fast enough can I take profit when
I got it and understand that every trade has a risk to it
but what we're doing is we're managing that risk so the people out there who
basically say this gambling people that say that every stocks that I buy there's
a chance I can go down yes obviously I know that I know that every single trade
that I make there was a chance that I might lose but if you look at the
overall big picture you look back at the last week of my trading videos you'll
see most of stocks light entered went higher so I don't know doing something
right something that I'm doing is working and
I hope you guys can kind of see that if you're looking for the right stocks
looking for the stocks with the right volume the right news looking for that
area the key areas buying on the dip taking profit fast managing
that risk properly you can become consistently profitable over time