Day Trading

  1. Risk and Money Management
    1. Capital Preservation Principles
      1. Trading Capital Protection
        1. Survival as Primary Goal
          1. Catastrophic Loss Avoidance
            1. Mental Capital Preservation
            2. Risk of Ruin Calculations
              1. Probability Mathematics
                1. Account Blowup Prevention
                  1. Drawdown Recovery Requirements
                2. Position Sizing Methodologies
                  1. Fixed Dollar Risk Model
                    1. Dollar Amount Per Trade
                      1. Consistent Risk Exposure
                      2. Percentage Risk Models
                        1. 1% Risk Rule Application
                          1. 2% Risk Rule Considerations
                            1. Account Size Scaling
                            2. Volatility-Based Sizing
                              1. ATR-Based Calculations
                                1. Instrument Volatility Adjustment
                                  1. Dynamic Size Adjustment
                                  2. Kelly Criterion Application
                                    1. Optimal Position Size Formula
                                      1. Win Rate and Payoff Ratio
                                        1. Practical Implementation Challenges
                                      2. Stop Loss Strategy
                                        1. Stop Placement Methods
                                          1. Technical Level Stops
                                            1. Percentage-Based Stops
                                              1. Volatility-Based Stops
                                                1. Time-Based Stop Rules
                                                2. Stop Management Techniques
                                                  1. Initial Stop Placement
                                                    1. Trailing Stop Implementation
                                                      1. Break-Even Stop Moves
                                                        1. Profit Protection Stops
                                                      2. Risk-Reward Analysis
                                                        1. Risk-Reward Ratio Calculation
                                                          1. Minimum Acceptable Ratios
                                                            1. Trade Selection Criteria
                                                              1. Expectancy Calculations
                                                              2. Asymmetric Risk Profiles
                                                                1. Limited Risk, Unlimited Reward
                                                                  1. Probability vs Magnitude
                                                                    1. Long-Term Profitability Impact
                                                                  2. Portfolio Risk Management
                                                                    1. Position Correlation Analysis
                                                                      1. Sector Concentration Risk
                                                                        1. Market Direction Bias
                                                                          1. Diversification Benefits
                                                                          2. Maximum Exposure Limits
                                                                            1. Single Position Limits
                                                                              1. Sector Exposure Caps
                                                                                1. Total Portfolio Heat
                                                                                2. Drawdown Management
                                                                                  1. Maximum Drawdown Limits
                                                                                    1. Recovery Strategies
                                                                                      1. Trading Size Reduction

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                                                                                  5. Order Execution and Trade Management

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                                                                                  7. Trading Psychology and Mental Performance