Capital

Sufficient Capital
Although leveraged accounts allow day traders to open large positions with small amounts of capital, unsuccessful day trading strategies are too often the result not having enough funds in an account to weather downturns. Successful day traders know that most positions will not become profitable the moment they are opened.

This makes strategic position sizing an absolute essential, as it determines one's staying power in the market and can often mean the difference between a winning trade and a losing one. Traders that increase the amount of idle capital available to cushion their positions either through a large initial balance or smaller position sizes lower the risk of margin calls.

An over-leveraged account may only be able to withstand a small disadvantageous price move before a margin call locks in a floating loss. By reducing the position size a day trading strategy requires, the trader reduces his/her exposure to the market and is able to manage their positions more effectively.