Published on : 23 September 20193 min reading time

Most new traders tend to focus just about all their time and energy on finding nearly perfect “setups”, but trade setups, even very good ones, are *not* the key to successful trading. It’s the *way* you trade your setups that keeps your losses smaller than your gains. And this is the single most essential key to trading success. To me, the process of limiting losses is more than just money management…it is survival.

I can’t give you a list of mechanical survival rules that will take the place of experience and make you a successful trader overnight, but if you stick to the following principles in your trading, you’ll be on track. You’ll be doing just about the opposite of the crowd, and you’ll eventually learn to limit your losses. Limiting your losses is the only way I know to make money in this business.

The following guidelines will sound radical, but they have guided me in making my living from trading for many years.

1. If a trade doesn’t go your way within the first one to five minutes, get out. I usually get out within one or two minutes as soon as my perceived edge is gone.

Momentum Trading: A Practical Day Trading Strategy to Get Profits from Hot Stocks

Momentum day trading can be extremely profitable when done correctly…

Day trading momentum stocks can be a very risky adventure. You can lose a lot of money when you pick the wrong opportunities.

The stockmarket can present you with a lot of hot stocks every day. Some of them are extremely risky while others are not as good as they seem. When you know how to identify and approach the best momentum stock opportuntites, you are able to generate a consistent and respectable amount of money in a very short period of time.

We know that day trading stocks with momentum is not the only way to make money investing online in stock market. But it can be the fastest way when you do it right. We also understand that a lot of people shy away from momentum stocktrading and think that only a few online stock traders can profit from it. It’s true. Only those traders with proven knowledge have the ability to profit consistently from momentum stocks.

You don’t necessarily have to trade momentum hot stocks all the time. But you can learn how to take advantage of them when you encounter the best stock opportunities while at the same time limiting your trading risk.