This is one of the simplest tactics for keeping your capital intact, but one of the most difficult rules to keep for a trader hooked on the excitement generated by the experience of a winning trade. There are no hard-and-fast rules for stops. You will have different limits for stops, depending on what stage of the day you are trading.

I tend to trade the post-open periods far less frequently than when I first started day trading. Now, my goals are to start premarket preparation at about 8:45 a.m. and be finished trading by 10:00 a.m. EST. With $20,000 capital, I would look to get between $500 and $1000 per day when I win, and to keep losses minimal, less than $200, when I don't. Trading the market open period gives plenty of opportunity to make between $50,000 and $100,000 per year.