After knowing the previous six day trading rules, let’s continue our discussion, traders!
Use limit entry orders under certain conditions
Do you often close orders too early before the trend ends? This can potentially reduce your profit. This is what traders usually do when open positions using the usual method. Therefore, you can try to enter the market with alternative entry methods, such as Limit Entry Orders. Limit Entry Orders allow you to buy below the current market price, or sell above the current market price.
Be selective in choosing the best market
Being selective is the key rule of day trading before entering the market. You must ensure that there is always a good reason why you choose to enter a particular market. For example, you prefer to enter the European market session because the level of volatility at that time is high.
On the other hand, you may avoid entering the Asian market session due to lower volatility. Prices tend to move sideways making it difficult to determine potential entry points. In addition, you should also consider that you always enter the market accurately.
The ninth rule of day trading is that you must control yourself when entering the market. When the market looks unfriendly and doesn’t match your analysis or trading system, don’t chase it.
You have to know that the market moves without anyone being able to regulate it. Therefore, you cannot control the market to move in your favor. Translated from page Daily FX, your mental state has a significant impact on the decisions you make, especially if you are a novice day trader.
Reduce trading volume
If you hesitate in making a decision, you may face fatal consequences for every decision you make. Hence, you can anticipate it by reducing the Volume or Lots you trade when doubt arises.
Usually, this doubt arises after a trader has suffered a significant loss.
Sometimes you wish you could make a profit every day. However, when the profit doesn’t come, or you have a really bad day with no profit (even minus), you should accept it gracefully. This is the most important rule of day trading.
Accept defeat and rise. Don’t wait until you refuse to admit defeat, as this will trigger revenge. Traders like this will usually try to overtrade. Even traders caught up with this kind of greed usually end up losing on their next trade.