15 Trading Rules For Day Traders

Trading rule No 1. Never chase. Forget about the Rupee loss for a moment as the real damage comes from the distraction it creates.

Trading rule No 2. Wait for the break. Most traders buy inside the range, get impatient and as a result they sell on first sign of strength which ends up being the breakout.

Trading rule No 3. Don’t ride the ticks and Rupee profits. It creates emotional turmoil and is draining. Prevention is best cure. Takes the fun out of the game.

Trading rule No 4. Price action trumps everything. Management lie or mislead but price action (money flow) never lies.

Trading rule No 5. Sell the news or a least sell partials. Markets discount everything and over the long run you will be better off.

Trading rule No 6. Always stay in control. Do NOT put yourself in news related coin toss trades, where the risk cannot be managed.

Trading rule No 7. Mind your own business, avoid conflict. If you take offence because someone has disagreed with your trade, then you are such a precious little petal.

Trading rule No 8. Do NOT set targets as all this creates is a premature EXIT. Run a trailer and let that take you out.

Trading rule No 9. Minimise whipsaw at all costs. It’s a trader killer. The root cause of trading failure more often than not, starts with whipsaw.

Trading rule No 10. Do NOT buy stretched breakouts. More often than not they recoil back into the range to flush traders out.

Trading rule No 11. Start will longterm charts and look to catch major breaks/moves. These tend to follow through and it makes it easier to run with winners.

Trading rule No 12.  Turn trading rules into habit. There is no point in having trading rules if you dont apply them!

Trading rule No 13. And the most important; only tell your wife about your losers. 

Trading rule No 14. Hit those stops, no questions asked. Hitting your stop and watching a stock rally hurts but not htting your stop and watching the stock fall hurts a hell of alot more.

Trading rule No 15. Avoid Blue Channels during trading hrs.Never Trade on TV Flashes ,Don’t trade on Result day -Untill u are having sure Result with u.Don’t trade on  Data flashes about Options -Everything is leaked and known by few Top people