| Most people looking to make money in the markets | | | | average trader. Never depart from your rules no |
| believe that the answer lies in finding some simple | | | | matter how good a trade "looks" or "feels" to you if |
| technical analysis strategies that will catapult them to | | | | it violates your objective and back-tested rules. |
| profitability. | | | | 4. Only trade when you are in an optimal emotional |
| The truth is that trading is not as simple as beginners | | | | state. Never trade when you are tired or are in an |
| believe. It is a profession, and like any profession it | | | | emotionally unstable situation (after a fight with a |
| requires a learning curve. Reading a book or getting a | | | | spouse or friend for example). Day trading is more |
| few simple "tips" is not going to turn you into a | | | | like athletics than academics. Trading on such a short |
| professional trader. | | | | time frame requires you to be able to make split |
| After studying for a length of time, it's not | | | | second decisions, and you're risking a lot of money |
| uncommon for students to begin their search for the | | | | when you do. Make sure your mind is sharp and your |
| "holy grail." | | | | emotions are centered. |
| They search for more indicators, chart patterns, | | | | 5. Keep a detailed trading log. Every day trading |
| gurus, alert services or the latest secret day trading | | | | course I've seen has a trading log. Yet my |
| strategies and other things that will provide their | | | | experience in dealing with trading students |
| answer to becoming successful. | | | | demonstrates that less than 10% of them actually |
| But here's the fact. Success lies within you .. and it | | | | use it. This is a huge mistake. Not only should you log |
| won't come easy. | | | | every trade, but you should also record how you felt |
| In fact, one of my favorite success principles is this: | | | | and what you were thinking as you took the trade. |
| "Successful people do what unsuccessful people are | | | | In this way your logs will become a type of |
| unwilling to do." | | | | "biofeedback" mechanism for you. Personally, this |
| Let's apply this to trading in the form of my list of | | | | was the difference that made all the difference for |
| "Day Trading Rules to Live By" ... all of which have to | | | | me. |
| do more with you than with the market. | | | | These 5 day trading rules are not the type of rules |
| | | | that you were probably looking for. The masses |
| 1. The consistency you need is in your mind, not in | | | | want rules about indicators, price bars, where you |
| the market. Many in the market get frustrated | | | | get in and where you get out. |
| because the market often behaves differently than | | | | Granted, you definitely need clear objective rules |
| they expect. You can't rely on the market to be | | | | about those things as well. Yet thousands of traders |
| consistent. It is largely a random walk. But there are | | | | have those types of rules, and yet continue to fail |
| times when the market does setup with a probability | | | | because those rules are about market action. |
| scenario that gives you an edge. Your job is be | | | | They fail because they don't have, or don't follow, |
| consistent in trading those probability setups and | | | | the more important rules the rules about their own |
| trade them every time they occur. | | | | action. |
| 2. Trade like a cat. Most beginners over trade. It's | | | | If you find yourself resisting the importance of these |
| one of the most common trading sins. Your job is to | | | | rules about your own behavior, realize that you are |
| be better than other day traders in having the | | | | one of the masses who feels the same way. But |
| discipline to wait like a cat in the brush until just the | | | | since the masses fail at day trading, you must set |
| right moment (your high probability setup) and then | | | | yourself apart and do something different than them. |
| jump on the trade without hesitation. | | | | Following these 5 day trading rules are what the retail |
| 3. Successful trading is simply a game of not making | | | | traders fail to do. Not because they can't do them, |
| mistakes. Keep a list of your day trading rules posted | | | | but because they are unwilling to do them. And |
| on the wall or on your monitor and then follow those | | | | remember, "Successful people do what unsuccessful |
| rules perfectly. You must be more disciplined than the | | | | people are unwilling to do. |