10 Daytrading Commandments, stick to them, and your accounts shall prosper!
- You shall follow your trading plan: Create a clear plan and stick to it, avoiding emotional decisions.
- You shall not risk more than you can afford to lose: Only trade with capital you’re willing to lose, never gamble your livelihood.
- You shall keep emotions out of your trades: Stay calm and objective; don’t let fear or greed drive your decisions.
- You shall always use a stop-loss: Protect yourself from large losses by setting a stop-loss for every trade.
- You shall respect market trends: Trade with the trend, not against it, for higher probability setups.
- You shall not chase trades after missed opportunities: Missing a trade is better than jumping in late and risking more.
- You shall stick to your strategy and avoid impulsive decisions: Trust your strategy; don’t act on impulse or market noise.
- You shall stay informed and continuously learn: Keep improving by learning from both wins and losses, and studying the market.
- You shall practice good risk management: Limit your risk on each trade to protect your capital in the long run.
- You shall remain patient and disciplined: Wait for the right setups and follow your rules, even when it’s tempting not to.
10 Daytrading sins, deadly for the accounts and the bank account
- Not Using a Stop-Loss: Failing to set a stop-loss can result in massive losses if the market moves against you.
- Moving Your Stop-Loss: Constantly adjusting your stop-loss to avoid taking a loss can worsen your position and drain your account.
- Overtrading: Excessive trading, driven by impatience or greed, leads to costly mistakes and higher fees.
- Revenge Trading: Trying to quickly recover losses by taking impulsive trades often leads to more significant losses.
- Trading Without a Plan: Entering trades without a solid plan and clear strategy results in inconsistent results and emotional decisions.
- Ignoring Risk Management: Taking oversized positions or risking too much capital on a single trade is a fast track to blowing your account.
- Letting Emotions Control Trades: Allowing fear or greed to dictate trading decisions leads to poor judgment and irrational trades.
- Chasing Trades: Entering a trade late after missing the ideal entry point increases risk and reduces profit potential.
- Overleveraging: Using too much margin or leverage can amplify losses, wiping out your account quickly.
- Failing to Learn from Mistakes: Repeating the same errors without reflecting on them and adjusting your strategy is a sure way to remain unprofitable.
These are habits and behaviors every trader should avoid to stay disciplined and manage risk effectively.
Keep in mind, trading is a marathon, not a sprint! Be consistent,
