Day trading rules
Page 1 of 1
20110815
Day trading rules
Day Trading Rules #1
KNOW YOUR MARKET. The best day traders specialize on only a small number of indices, or stocks, and get to know them intimately(for instance focus on trading warrants or goring stocks). The authors of the Camarilla {b} Equation themselves day trade the S&P 500 Index almost exclusively, unless a REALLY interesting opportunity pops up. In this way, over time, you will naturally become attuned to the rhythm of your chosen instruments, and will come to have a 6th sense as to when you should and shouldn't trade.
Day Trading Rules #2
DON'T BE GREEDY. Do NOT try to squeeze the last tenth of a point out of each day trade: This is a huge distance - you can easily afford to be slightly late on your entry and slightly early on your exit. By never hanging on for 'top dollar', you won't suffer the pain of seeing a winning trade somehow turn into a losing trade. Or if you are holding huge quantity try to lock in some profits first by selling example you have 1k lot sell 300 lot first when a stock move a few bid from your buying position. At the end of the day apply wysiwyg(What you see is what you get rule= which also means if a stock start dropping sell it, if its going up keep it.) Remember hope is the number 1 enemy of a trader!!!
Day Trading Rules #3
TAKE A LOSS WHERE NECESSARY. Most day traders who fail do so NOT because they can't create winning trades, but because they fail to kill their losers soon enough. Knowing when to take a loss is the most important lesson any day trader ever learns. If you keep your losses small, you can come back to fight another day. The way to think about this is to cast your mind back to school - exams consist of many questions. You can get some of the questions wrong, it doesn't really matter. The end result (i.e. the overall score) is the important thing. In the same way, if you have a bad trade, so what? As long as you control the loss in a calm, professional way, keeping it within the limits you have set for your money management strategy, it is STILL a good trade! It is how your profit & loss looks at the end of the month that is the important thing.One note to this - we have found that if you have 3 losers in a row, it is best to take the rest of the day off, as you are obviously out of tune with the markets - it is important to focus your attention when day trading commodity or futures contracts. Cut losses fast and let profits run!!!
KNOW YOUR MARKET. The best day traders specialize on only a small number of indices, or stocks, and get to know them intimately(for instance focus on trading warrants or goring stocks). The authors of the Camarilla {b} Equation themselves day trade the S&P 500 Index almost exclusively, unless a REALLY interesting opportunity pops up. In this way, over time, you will naturally become attuned to the rhythm of your chosen instruments, and will come to have a 6th sense as to when you should and shouldn't trade.
Day Trading Rules #2
DON'T BE GREEDY. Do NOT try to squeeze the last tenth of a point out of each day trade: This is a huge distance - you can easily afford to be slightly late on your entry and slightly early on your exit. By never hanging on for 'top dollar', you won't suffer the pain of seeing a winning trade somehow turn into a losing trade. Or if you are holding huge quantity try to lock in some profits first by selling example you have 1k lot sell 300 lot first when a stock move a few bid from your buying position. At the end of the day apply wysiwyg(What you see is what you get rule= which also means if a stock start dropping sell it, if its going up keep it.) Remember hope is the number 1 enemy of a trader!!!
Day Trading Rules #3
TAKE A LOSS WHERE NECESSARY. Most day traders who fail do so NOT because they can't create winning trades, but because they fail to kill their losers soon enough. Knowing when to take a loss is the most important lesson any day trader ever learns. If you keep your losses small, you can come back to fight another day. The way to think about this is to cast your mind back to school - exams consist of many questions. You can get some of the questions wrong, it doesn't really matter. The end result (i.e. the overall score) is the important thing. In the same way, if you have a bad trade, so what? As long as you control the loss in a calm, professional way, keeping it within the limits you have set for your money management strategy, it is STILL a good trade! It is how your profit & loss looks at the end of the month that is the important thing.One note to this - we have found that if you have 3 losers in a row, it is best to take the rest of the day off, as you are obviously out of tune with the markets - it is important to focus your attention when day trading commodity or futures contracts. Cut losses fast and let profits run!!!
| |||
|
| ||
| |
phoenix777- Moderator
- Posts : 13701 Credits : 16143 Reputation : 1704
Join date : 2011-02-03
Location : Malaysia
Job/Hobbies : eating good food
Stock Exposure : 1 year
Stock Portfolio : empty handed
Day trading rules :: Comments
m$ wrote:Not bad article, 85% to my satisfaction no doubt certain is not that agreeable. U plagiarise and modify? [You must be registered and logged in to see this image.] 1 rep. total guess I give u more than 6 7 rep.
got modify abit lor.....take out lots of points like stick to your trading plan and do your homework [You must be registered and logged in to see this image.]
K.Y. wrote:Nice article ! Sifu shud make it to 10 rules ma. [You must be registered and logged in to see this image.]
yalor.....shd have one more one
whn i think of it i pt in lor
When i have time i will put in more rules..now no time even to read this article [You must be registered and logged in to see this image.]
Similar topics
» Top 10 Rules For Successful Trading
» Phoenix's rules to survive goreng stock(Day trading)
» M’sian banks may reduce derivative trading with US due to new rules
» Trading Tip Van Tharp The Craftwork of Trading Part 2 By Ken Long
» April 19th FRI - BC Daily trading floor - last trading day ; Week 3
» Phoenix's rules to survive goreng stock(Day trading)
» M’sian banks may reduce derivative trading with US due to new rules
» Trading Tip Van Tharp The Craftwork of Trading Part 2 By Ken Long
» April 19th FRI - BC Daily trading floor - last trading day ; Week 3
Permissions in this forum:
You cannot reply to topics in this forum
|
|