The path you take will define your success or failure as a trader. Market Insider's Trading Room uses the simplified table below to illustrate a few important observations about profit and loss. Alternatively, buying breakouts reflects a lower percentage of winners but the average gain is greater. Lower your AvgLOSS Day traders have fewer profitability options than position traders.
Price tends to move away from an entry point as a function of time.
But day traders are in a much better position to control losses than position traders. The price-time tendency now works to their advantage. Manage the loss side of trades and you'll increase profits more quickly than chasing gains. If price goes through the line, exit immediately with a small loss and get on to the next trade. You have to be very, very good before you allow yourself to be bad.