Direct searches for light dark matter particles (mass < 10 GeV) are especially challenging because of the low energies transferred in elastic scattering to typical heavy nuclear targets. We investigate the possibility of using liquid Helium-4 as a target material, taking advantage of the favorable kinematic matching of the Helium nucleus to light dark matter particles. Monte Carlo simulations are performed to calculate the charge, scintillation, and triplet helium molecule signals produced by recoil He ions, for a variety of energies and electric fields. We show that excellent background rejection can be achieved based on the ratios between different signal channels. We also present some concepts for a liquid-helium-based dark matter detector. Key to the proposed approach is the use of a large electric field to extract electrons from the event site, and the amplification of this charge signal, through proportional scintillation, liquid electroluminescence, or roton emission. The sensitivity of the proposed detector to light dark matter particles is estimated for various electric fields and light collection efficiencies.