4. Risk Management Strategies

Risk Management for Different Strategies

There are two basic categories of day trading strategies.

  • Discretionary
  • Systematic/Automated

You can also combine the two. A Discretionary strategy allows you the leeway to override some signals that generally produce a trading opportunity.

A systematic approach is one where you enter a trade when a signal is alerted and manage the risk based on predetermined criteria in an automated manner.

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