Trader A vs. Trader B
                       Trader A made a better margin decision than Trader  Bbecause he could have met a margin call and still  had  capital  left  whichwas not the case for Trader B who had a deficit capital position and had  toante up cash to the brokerage firm.                       As we  progress  in  this  course,  we  will  discussTrader A's and Trader B's understanding of money  management,  knowledge  ofthe risks inherent in various types of stocks, and a trading  plan  that  isgeared to increasing capital rather than losing 50 to 100% on one  trade  orinvestment.                       Almost forgot, thank you for reminding me.  There  isa Trader C.                       Trader C: started with $15,000  of  capital,  carriedno positions home overnight, took no more than 1/4  -  3/8  point  loss  pertrade, and takes trades in stocks that have a  potential  for  1  to  1  1/2point profit.                                   On 6/6/99 Trader C made three  trades  inNEON profiting on one out of the three, yet used correct money management.
[pic]NEON opened at 41 3/4 on 6/6/99 and closed  at  45  1/4.  This  is  just  anexample and not an actual trade, but it points out what a  good  day  traderis trying to accomplish . Keep your losses to a 1/4 - 3/8  of  a  point  andtry to make 1 point if the trade allows you to manage it that way.                       In day trading you are limited by time and range,  soyou must manage your average loss and size with  discipline.  Trader  C  wascorrect on only one of three entries and still made a few bucks rather  thenbeing out of business on 7/7/99 when NEON opened at 18 3/8.