There are 3 basic pillars or basics underlying all day trading rules: Mental Psychology, Trading Strategy and Risk Control. Below are some day trading rules that bear taking notice of.

Anyone’s mental attitude plays a big part in day trading. One needs consistency in one’s mental makeup since the market is largely a random walk you need to be alert and flexible. There are times the market does set up to give you an edge and you must be mentally prepared to take advantage of it.

One needs patience till the setupright situation develops and then put one’s order in. One must discipline oneself to hold-up till the exact interval and then act with certainty.

This game requires one to limit their mistakes and minimize their losses.  You need to be disciplined and not violate any of your rules. Most of all, you need to back test in order to convince yourself that the rules work favorably.

To keep risk to a minimum, always protect your capital with stop orders. If the risk is too great, pass on the trade. One needs to simulate trade until they have all the mechanics figured out and can exercise smoothly.

Another big factor is not to be emotionally stressed by other circumstances while trading.  There is nothing like a clear head to enact emotionless decisions when trading. Inevitabley, losing trades occur and a steady emotional makeup will allow one to bounce back faster. One needs to develop the assurance to trade without emotion.

Be sure you keep an active log of your trades for later reflection. This is a way to hold yourself accountable. You need to record how you felt and what you were thinking when you made the trade. What indicators you used and how the trade developed. This is a kind of biofeedback that allows you to talk to yourself rationally and can be referred to.  This allows you to see if your theory is working or not.

One needs a clear plan and objective to be able to work and to trade with. Trade with a set of rules that you can trust!  Keep a list of your day trade plans on index flash cards so you can review the method is if necessary before you make a trade. Back testing your strategy  is vitally important. One needs to back test and have assurance oneself that the strategy  is on target. Finding good day trader software may be helpful.

A constant stick-to-it disciple must apply to your money management rules. Risk no more than 2% on any trade. Without proper equity management new traders are tempted to take risks far out of proportion to the amount of equity they have in their account. Even if you lose 50% of your trades,  you can still make money with the right money management rules. 

Day trading can be a very enjoyable career. The people who make it in this business are the ones who are well balanced emotionally, have a good method and have a good money management system in place. Even a day trading stock tip may prove workable with the right method.