Showing posts with label Risk Management. Show all posts
Showing posts with label Risk Management. Show all posts

Wednesday, March 10, 2021

Your Full Guide to Day Trading US Tech 100



Are you interested in day trading US tech 100 stocks? Well, one of the things that you require is a suitable trading strategy. Tech 100, also known as US tech 100 or NASDAQ 100, is a modified market capitalization-weighted index comprising top non-financial companies listed on the NASDAQ stock exchange.

Day trading tech 100 is a common strategy in stock markets and can be very rewarding if you execute it well. However, we must indicate that it can be challenging, not only for newbies but also for experienced traders. This post is a full guide to day trading NASDAQ 100 for new traders.

The Basics of Day Trading Strategies


Before getting into the different types of day trading strategies, it is crucial to understand the basics. Here are some crucial elements that you need to know:

  • Money Management

It is important to point out that stock trading is a risky undertaking where one can easily lose his/her resources. So, you need the right money management strategies. Start by deciding the amount you are willing to risk.

Consider risking only a small portion of your cash in every trade, preferably 2-3% of your trading capital.

  • Timing

When the stock market opens, it tends to get very volatile, and an experienced trader may be able to rake some profits. It is prudent for new traders to always hold back for about 15 minutes to establish the emerging trends. After all, you have a lot of hours ahead to trade.

  • Time Management

As a day trader, do not expect to make a lot of money from trading for one or two hours. Instead, you need to follow the market to identify potential trading opportunities continually.

  • The Need for a Good Broker

To successfully trading US 100 stocks, it is also important to look for a broker with low transaction fees. This will ensure that all the profit you make does not get galloped by the broker. Other attributes to look for including the availability of diverse trading instruments and an easy-to-use trading platform.

Common Day Trading Strategies


The following are some of the standard day trading strategies you can use. Take a closer look at each to understand how they work and increase your trading chances successfully.

  • Breakout Day Trading Strategy

This strategy focuses on the price of a selected stock to note when it clears a specific level on the trading chart with a growing volume. A trader might enter a long position when the price breaks above the resistance level on the chart. If the selected US tech 100 stock price breaks below the support, you might go for a short position.




When an asset manages to break through a barrier, what follows, in most cases, is high price volatility in the direction of the breakout. It is important to use the right indicators to identify the levels of support and resistance correctly. You can use a selected stock's recent performance to identify support or resistance and set a reasonable price target.

  • Scalping

Scalping is another popular strategy used by stock traders. The method capitalizes on short price movements, implying that the trader can enter and exit multiple times to drive quantity. The strategy is fast-paced and an inspiring way of trading, but you must be extra careful because it can also be perilous.

To increase your chances of success when scalping US 100 stocks, it is prudent to look out for attractive liquidity. Furthermore, you should be good at timing and close trades fast to avoid incurring losses.

  • Momentum Trading NASDAQ 100

Momentum trading entails acting on news reports and identifying trending moves supported by high volume. If you take a closer look at US tech 100, USA 500, and Dow Jones stocks, there are always several stocks that move with 20-30% every day. You can consider trading such stocks using a momentum strategy to increase your chances of success.

To use the momentum trading strategy, you start by identifying a trend to open a position. Then, hold unto the position until you get signs of reversal; once the reversal is confirmed, exit and look for trading opportunities in the new trend.

The momentum trading strategy is pretty simple and effective if you use it correctly. However, you need always to be alert about the latest news and announcements that affect the stocks.

  • Reversal Trading

While it is true that reversal can be a potentially dangerous strategy, mostly when employed by novices. The strategy is also known as pullback trading and requires an in-depth understanding of the stock market dynamics.




To trade Tech 100 using this strategy, you need to identify the possible pullbacks and predict their strength. If the selected stock's reversal is strong enough, you might take it to be a decent trading opening. You must be on the lookout to note when the pullback is about to end and close your position.

Risk Management in Day Trading Tech 100


As we have mentioned, day trading is high-speed. Within a short moment, you can make impressive gains, but it is equally possible to make huge losses. To reduce the risk of loss, you should use several risk management methods, such as these:

  • Identify a good strategy and apply it skillfully.
  • Consider following the 1% rule, which indicates that you should never put more than one percent of your capital on a single trade.
  • Use stop-loss orders to minimize losses if the price of a stock moves against your prediction.
  • Diversify your portfolio by looking beyond US tech 100. For example, you might consider adding bonds and platinum trading into your portfolio.

If you are new to the stock market, tech 100 stocks can be an excellent place to start. Using a good day trading strategy, you enjoy limited intra-day risks, greater time flexibility, and do not have to worry about the dangers of holding positions overnight. 

Remember that in the stock market, especially when using day trading strategies, it is essential to build your skills progressively.


Friday, October 30, 2020

3 Risk Categories Risk Advisors Might Consider




Business owners often employ consulting services like the one run by Declan Kelly to advise them on management, capital, strategy, and communications. Some consulting companies like the one managed by Founder Declan Kelly even offer risk management advisory services. 

Businesses are subject to many risks, and anticipating and planning for them can help minimize future difficulties. Here are three categories risk advisors might look at when performing risk assessments. 

1. Cyber and Physical Security Risk


Cyber risks in business include hacking, viruses, cloud vulnerabilities, mobile security threats, and more. Because the information in the modern world is often stored and transferred online, there is a high risk of confidential information being stolen or leaked. 

Businesses are also vulnerable to social engineering, where employees and associates are manipulated through false social interactions into revealing company secrets. Social engineering is also a physical security risk, along with document theft, identification theft, and other forms of theft. 



There are also cyber-physical security systems that are designed to utilize cyber elements like sensing and computation to interact with physical elements like humans and pose a serious threat.

2. Economic and Financial Risk


Risk advisement might also include economic and financial risk aspects. These are not the same. Economic risk is dependent on the economy and its ups and downs. Financial risk comes from a business's own finance-related business dealings such as loaning money, interest fluctuations, and company debt which can harm a business's cash flow. 

3. Political and Reputation Risk


There is also risk associated with both the political and reputation areas. When considering political risks, advisors take into account the world's political climate and general view towards international trade and how that can affect business. Reputation risk takes into account how damage to the company's reputation can lead to a loss of trust, profits, investors, and customers.

There are, of course, other risks to consider. However, these are some of the bigger risks to assess and plan for in business. Being ready for such risks can help a company avoid disaster.




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