Day traders have fewer profitability options than position traders. Price tends to move away from an entry point as a function of time. So individual day trading gains (AvgWIN) are generally smaller than position trading gains. Very short-term time frames also frustrate attempts to raise %WIN since day traders must be right immediately while a position trader can wade through many whipsaws to get to a profit. - Raise your %WIN - Raise your AvgWIN - Lower your AvgLOSS

But day traders are in a much better position to control losses than position traders. The price-time tendency now works to their advantage. In other words, incurred losses should be smaller (on average) because the position is held a shorter period of time. This allows day traders to take their individual losses closer to -0- than position traders.

Manage the loss side of trades and you'll increase profits more quickly than chasing gains. In preparing your exit, recall a valuable rule for optimal technical analysis entry: execute your trade where price must move only a short distance to prove that you are wrong. This frequently defines a strategy where you enter a promising position right at support/resistance. If price goes through the line, exit immediately with a small loss and get on to the next trade.
 

You have to be very, very good before you allow yourself to be bad. %WIN simply measures your winners against losers. If you make money on 3 out of 4 trades, your %WIN is 75%. See how the average loss changes from the 75% to 25% levels.

AMZN's daily range expands over a 3-day holding period . This tendency of price to move away from an entry point underscores a natural advantage the day trader has over the position trader or investor. The shorter a position is held, the more efficiently losses can be taken. Day traders must capitalize on this mechanism through quick exits on non-performing entries.