After knowing the previous six day trading rules, let’s continue our discussion, traders!
Use limit entry orders in certain conditions
Do you often close orders too early before a trend ends? This has the potential to reduce the profit you get. This is what traders usually do when Open Position uses 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 trading
Selective is the main key to day trading rules before entering a market. You have to make sure that there are always good reasons why you choose to enter certain markets. For example, you prefer to enter the European market session because the level of volatility at that time was high.
On the other hand, you might avoid entering the Asian market session because of lower volatility. Prices tend to move sideways so it is difficult to determine potential entry points. Additionally, you must also consider that you always enter a market accurately.
Take control of yourself
The ninth day trading rule is to be able to control yourself when entering the trading market. When the market looks less friendly and is not in line with the analysis or trading system used, do not pursue it. You must know that the market moves without anyone being able to regulate it. Therefore, you cannot control the market to move according to your wishes. According to Daily FX, your mental state has a significant impact on the decisions you make, particularly if you are new to trading.
Reduce trading volume
If you hesitate in making a decision, you may face fatal consequences on every decision taken. Therefore, you can anticipate it by reducing the Volume or Lot that you trade when doubts arise.
Usually, this doubt arises after a trader experiences a significant loss.
Lose gracefully
Sometimes you might expect to be able to profit every day. However, when profit doesn’t come, or you have a really bad day without any profit (even minus), you have to accept it gracefully. This is the most crucial day trading rules.
Accept the defeat and move on immediately. Do not wait until you refuse to admit defeat, because this will trigger a sense of revenge. This kind of trader will usually try to overtrade. Even traders who are stuck with this kind of greed usually end up with a loss on the next trade.
