Small Losses
                       This is the part of the equation where you  have  themost control. If you can manage your losses, the profits will have a  higherlikelihood  of  happening  even  with  average  stock  selection.  It  takesdiscipline and the proper mental attitude to determine your stop levels  andexecute the stop as planned.                        What  usually  happens  to  new  traders   is   theydetermine for example a stop loss level of no  more  than  $300  per  trade.This can be .30 on 1000 shs or 1 point on 300 shs. It all  depends  on  yourmoney management plan and available capital. The  stock  gets  to  the  stoplevel for the trader that is using a mental stop. The  trader  hesitates  topull the trigger because he sees a quick uptick but  the  stock  then  ticks1/8 below his stop level and is offered there. The  trader  freezes  and  isnow in a position of hope, which is forbidden territory for the day  trader.If you keep taking bigger losses than normal you will have to  increase  theprofit on your winning trades and/or the percentage  of  profitable  trades.It is easier to control your loss side than  to  accomplish  both  of  thosebecause as a day trader we must trade under  the  limitation  of  a  shortertime period and range of the stock. (Repeated for a reason!)                       My advice to you is you will be better off  if  afteryou receive confirmation of execution that you immediately  enter  either  astop loss or a stop loss limit order to protect your exit  from  the  trade.This takes the judgement out of  your  hands  and  protects  you  from  youremotional-self, which is almost always wrong. This one rule  alone  will  gomiles in improving your trading.                       The next most important thing to keeping your  lossessmall is you don’t have to wait until your stop loss  point  is  hit  beforeyou exit a trade. When you enter a trade the market must prove  to  you  thetrade is correct by turning profitable within a short  period  of  time.  Ifthe stock or  the  market  dynamics  change  after  your  entry  and  appearnegative, just get out of your  position.  Don’t  wait  for  the  market  tocollect your $300 by taking out your stop. It is better to exit  the  trade.If you are correct you save some money. You  are  better  off  entering  thetrade again as it turns around and trades up through your entry point.