3 Day Trading Rules You Should Never Break

Day trading is an addiction. It works like a drug. Both the success (profit) and failure (loss) in it results in more and more trading until it reaches to investor’s bankruptcy or to investor’s psychological imbalance. This could be saved if an investor follows 3 day trading rules given below. By following these trading rules you can make much money from day trading than you previously made following a hit-or-miss path.

3 unbreakable day trading rules

Trading rule 1: Stick to your plan, no matter what

Earning a lot of money every day before the closing bell rings could be the central idea, but it cannot be a plan, from any stretch of imagination. It can never pass for a plan. If this is all one got, the situation is not very bright. The sun will soon set in the horizon leaving a bitch-black darkeness behind.

It is, therefore, advised to have a proper plan for your day trading activities. And once a plan and the strategy to meet the goal set in the plan is created and tested, stick to it. Follow it to the dressing room, for even the best of the strategies, if not backed, will not succeed.

The worst thing a day trader could do to himself and his plan is to switch strategy at the drop of a hat.

Trading rule 2: Shun greed and be a nobleman

If you scan through the history of people losing money in day trading then you will see pages and pages of history littered with the stories of excessive greed. Greed, if controlled, could be a proponent of growth, but when left untamed, it brings disaster for its master.

Do not wait till the last minute for the bell to toll before you can surrender the winning hand. Sell it much earlier and remain satisfied with the profit you make, or even the loss you incurred.

Trading rule 3: Never be afraid of loss, it doesn’t matter

If day trading is a gamble, letting go of the bad cards dealt to you is the key to the pot. Many day traders are afraid of loss because of which they do not keep their minds and eyes open to see the bad trade they have done. At the end, they stick to a bad trade for long, which results in more loss.

The winner in the game of day trading is the one who knows when to hold it and when to fold it (surrender), so that the gain could be maximized and loss could be minimized. Keeping the losses small, in a sense, is saving money which didn’t flow through like sand from the clenched fist.

If you want to make real money in day trading then you should follow the day trading rules laid above. Breaking any of the day trading rules may push you away from your goal. Keep your goal in mind and follow the trading rules set above.