25 Rules Of Day Trading

Newbie traders often struggle with making consistent profits or may not be able to become profitable at all when they first start with day trading. Whereas, we also know of people, and quite a lot of them, who has built a fortune with smart trading decisions. 25 Rules of Trading is a good starting point.

This second group was also once at the beginner stage.

So, how did the outcomes turn out to be different?

Self-discipline is at the core of things here. As a trader, you don’t have a boss (hopefully) telling you what to do, how to do it, and when to do it. You will have to make decisions on your own, and it is possible to get carried away sometimes.

Here, we’ll discuss trading discipline rules to help you understand how to move at a sustainable pace and make consistent profits. If you’re wondering “how to be a disciplined trader,” hang tight as we explore the 25 rules of trading.

What Are The 25 Rules Of Day Trading?

Let’s dive straight into Douglas E. Zalesky’s 25 rules of trading right away.

1) The Market Rewards Discipline

It may be tempting to jump straight into the game and become an overnight millionaire, but that’s not a realistic goal.

To start off with the top rules for trading, you must pace yourself and always progress sustainably. The market will pay you higher profits in the long run if you stick to a disciplined approach. That starts with a solid Trade management Strategy and the xBrat Manager will surely help you on THE most important part of your trading strategy.

2) Discipline Is Either 100% Or 0%

Yes, you read that right. There is no in-between when it comes to discipline. You are either committed 100% to your trading discipline for every trade, every day, or you’re not.

For instance, there’s no point in sticking to a bad trade just because of a gut feeling — if things are going against you, pull out.

3) If You’re Not Doing Too Well, Pace Yourself

It is normal for you to want to cover your losses from a bad trade by stretching the stakes even higher for the next round.

Don’t, please!

Trading is a mind game, keep emotions out of things. You know you’re performing poorly; don’t lose any more money than you already have — pace yourself and make informed decisions.

4) Don’t Turn Your Win Into A Loss

This is one of the most often violated day trading discipline rules — just try not to be greedy.

If you see a trade is profitable enough, why avoid pulling out when you can and earn a profit? Many traders delay closing a trade in hopes of a better profit. It can and does backfire, turning a profitable trade into a loss.

5) Don’t Compare Your Wins To Your Losses

Usually, your losses can be bigger than your profits (per trade). This means that you’ll have to make several profitable trades to cover a single losing trade. Don’t try to go all-out with a single winning trade until it turns into a loss.

6) Stick To Your Strategy

It’s hard enough making a strategy that suits your trading goals. Don’t make things harder for yourself by switching your approach again and again.

7) Don’t Let Someone Else Get To Your Head

Everyone has their own pace of doing things. In today’s world, social media can make comparisons inevitable. Don’t be drawn towards what others are doing, approach the trade with a sustainable pace that you’re comfortable with.

8) There’s Always Tomorrow

You will inevitably lose money when trading, it’s part of the game. Just don’t let it become more than it has to be. You can always come back tomorrow and trade more profitably.

9) Trade Small Until You Can Trade Bigger

Only when you’re able to consistently make profitable smaller trades, should you move onto bigger goals. Don’t trade bigger unless you’re absolutely certain that you can make informed and disciplined decisions.

10) Know When To Pull Out

Everyone can fall into a losing trade, but the real problem starts when you wait to pull out. Don’t lose more money in the expectation that your losing trade will become profitable. You may end up losing more money — pull out!

11) Let Your First Loss Be Your Guiding Light

Your loss will show you that the market is not moving as you expected. If this is so, you must exit before things become even harder.

12) Hope And Pray Does Not Work

Wake up, people! Trading is a mind game — if you know that a decision is unwise and leading to a loss, simply praying for the best won’t help.

13) Mainstream News Is Old News

What you hear on mainstream channels is not what is happening at the moment. This news has already gone through several stages of analysis and scrutiny. Traders base their trades on what is happening at the moment, not what they hear on the 9 ‘o clock news.

14) Don’t Speculate, Trade Instead

Base your decisions on the market conditions, not mere speculation — the latter will never do you any good in the long run.

15) Losing Is Inevitable, Accept It

As a trader, you must accept that sooner or later, you will lose money — be ready for it, and don’t let it deter you from pursuing your trade.

16) Pull Out During Market Stagnation

If the market is not going anywhere, you don’t have to waste your time on the screen.

17) Avoid Big Losses

A big loss can be hard to cover, avoid it at all costs.

18) Trade Little But Consistently

Don’t rush it, proceed at a pace you can maintain for a year or longer.

19) Take Small Wins

Don’t aim for big “home runs,” take small wins consistently instead.

20) Consistency Is Key

With consistent results, you’ll gain confidence and control over your trade.

21) Scale-Out When In Profit

By scaling out on a winning trade, you can earn more profit per trade (but never try to do so for a losing trade).

22) Pursue The Same Strategy

Think of your trade like a job, you do the same thing (adjusted where needed) every day.

23) Avoid Analyzing Too Deep

If you know the market is headed your way, place your bid now.

24) Traders Start The Same

Your trading habits will define you in the long run, not how you started.

25) The Market Is The Judge

No one can control the market; it functions irrespective of our feelings — learn to live with it.


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