How to Trade using Percent Change? ?

<p>It doesn't matter how many percent a stock drops or rises until you purchase it. Once you purchase a stock, then you make money when the stock's price rises. If you are not using margin, your gains, and losses percentage wise equal to those of the stock. But if you buy stocks on margin, you need to take the margin into account when calculating profits or losses.</p>

<p>To calculate the amount of a daily price variation, you'll need to know the high and low prices for a given stock on a given day. Most newspaper and online stock quotes give this basic information, labelled "high" and "low." Subtract the smaller number from the larger number to determine the daily price variation. Since it is only a measure of variation, or difference, it does not matter whether the stock gained or lost value.</p>

<p>There is no set % that can be made every trading day. The market doesn't work that way. There is no quota. Volatility changes, price action unfolds differently at different times, etc. You must accept the market the way it really is. You can set a goal for yourself as a benchmark. And remain flexible and realistic about potential profit and loss and overall profitability. “I want to make $500 a day or 3% profit a week isn't going to work. You are picking numbers out of a hat. Stay flexible and open minded. Learn. Improve. Think outside of the box. Find out what everyone else is doing and do something different.</p>

<p><br>As a day trader, you should be thinking in terms of account size growth. If you are experienced or have a good mentor to look over your shoulder to make sure you are not messing up, it is very easy to make 1% account growth per day (depending on your account size of course). As your account grows it will be harder and harder to make a full percentage gain due to liquidity issues, but if you are new and starting out with just a few thousand, you have no problem making your 1% per day.</p>

<p id="isPasted">Trading using percent change involves monitoring the percentage change in the price of a financial instrument over a given period of time. Here are the steps to trade using percent change:</p><ol><li>Choose a financial instrument: Select a financial instrument that you want to trade, such as a currency pair, stock, or commodity.</li><li>Determine the time frame: Decide on the time frame that you want to use to monitor the price of the instrument. For example, you could monitor the price change over the last day, week, or month.</li><li>Calculate the percent change: Calculate the percent change in the price of the instrument over the selected time frame. To do this, subtract the price at the beginning of the time frame from the price at the end of the time frame, and divide the result by the initial price. Then, multiply the result by 100 to get the percent change.</li><li>Monitor the percent change: Monitor the percent change in the price of the instrument over time. If the percent change is positive, it indicates that the price has increased, while a negative percent change indicates that the price has decreased.</li><li>Make trading decisions: Use the percent change to make trading decisions. For example, if the percent change is positive, it may be a good time to buy the instrument, while a negative percent change could indicate that it's a good time to sell.</li><li>Use risk management strategies: As with any trading strategy, it's important to use risk management strategies to minimize potential losses. For example, you could set stop-loss orders to automatically close out positions if the price moves against you.</li></ol><p><br></p><p>In summary, trading using percent change involves monitoring the percentage change in the price of a financial instrument over a given time frame and using that information to make trading decisions. It's important to use risk management strategies to minimize potential losses and manage risk effectively.</p>