We especially like to limit risk in trading. Buying break outs as near to resistance as possible on very good volume and locking in some gains the first day gives rapid profits. You can on the remaining portion set stops to protect your gains and/or greatly limit any losses. Same is true for shorting stock by selling as close as possible to support. It is recommended not to invest more than 10% of your portfolio in any one trade and set stops at 5-20% lower so you cannot loose more than 0.5% -2% of your portfolio on any one trade.