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9 Tips And Rules For Day Traders
Day trading is a convenient way for most people to make money when they dedicate a couple hours on it or, for some people, make it their full-time job.

Almost everyone’s dream (not to say everyone’s dream), is to be their own boss and work for as many hours a day as wished. 

With trading you can live your dream and have plenty of time to spend with your family, friends or doing the things you like the most.

When it comes to money, there's really no limit as to how much you can make as a trader. 

However, even though the upside is huge, it requires skills, knowledge, patience, and consistency; otherwise, you will be losing money instead of making money.

In this post I'm going to give you some of the best day trading tips and rules for you to become a great day trader and to help you avoid common trading mistakes.
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Probably the most important rule when being a day trader no matter if you are a beginner or an advanced trader, is being patient. 

Trading is a really risky business where everything can happen and you need to be able to think and play your cards right in order for you to make consistent profits.

The majority of people that quits day trading, do this because they're too greedy and lack patience, which leads them to rushing decisions and making big losses.
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It's normal as you start making profits to desire more and more. This is going to be bad for your trading results if you don’t have self-control.

You might take a trade because you anticipate a reversal. 

Or you might take a breakout trade anticipating continuation of the trend... 

Whatever your position is; you have to set a price goal for when and where to take your profit or loss.

Once you set your particular goal, stick to it, this way you will protect your trading account (risk management) and avoid the mistake of being too greedy.
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In day trading, is fundamental to know your supply and demand levels...

Make sure you always look to buy at demand levels and sell at supply levels.
Supply Level
Waiting for confirmation is rarely profitable in day trading, you need to be confident in your levels and trade them with no fear.

Day traders who wait for confirmation from (for example) a moving average crossover will be late in the trade and their risk reward ratio will suffer.
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Every trading strategy you use should be based on the behavior of the market.

You have to understand how the market works from the really simple details like trading hours to the complex details like trading psychology.

Not every market is the same and you have to consider every detail. In fact, in 1990´s day trading had a bad reputation due to “novice traders” that thought trading was a "get rich quick" thing.

Either be futures, forex, stocks, options, ETFs, etc. they all are traded in different ways.

You have to understand the specific differences between each one before you trade them.

Lack of knowledge and understanding will most likely lead to losses.

Want proven trading system based on the behavior of the market?
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We all know that higher risk equals higher potential profit.

However, in day trading you should have a reward / risk ratio above 1 on every trade you make in order for you to always have a a higher potential reward to your risk.
Reward To Risk
As you become a better trader you'll learn how to better manage risk. 

Nevertheless, I recommended (no matter how experienced you are) to always take small risks.

In fact, the psychological impact that causes a high loss because of a bad trade can lead to revenge trading (to get back what you lost) and this will most likely end up with you losing even more money.
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The most important rule to become a great day trader and make consistent profits is, well, to be consistent.

By consistent I don’t mean to trade every single day, but to always stick to your plan, risk management, strategies and most importantly control your mindset.

Unlike what the majority of people think, the best and most successful day traders in the world don’t trade every single day. 

The best traders are patient and wait for the best opportunities to trade.

More is not always better. 

In day trading, it is not that important how many trades you make but if they follow your plan or not.
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Having several trading strategies or at least two strategies can be really helpful.

In case one of your strategies doesn’t give you setups, you can use the other one.

The more strategies you have the better (as long as you don't get confused and can't follow your plan).

If you trade too many strategies you will find it really hard to stick to your risk management because of all the open trades you might have in the market.

Like I said before, more is not always better. 
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There are plenty of trading robots in the market that claim to be the best “predictors” of the market and will help you "make millions of dollars". 

The truth is that these robots are a waste of money and time, and can lead to huge losses.
The best way to invest your money is, without a doubt, in education.

Learn for someone that can give you all the knowledge you need to make yourself more money, instead of wasting money on robots.
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Unfortunately, you won’t win every day even though you trade your plan right.

Accept that you will have losses now and then.  Believe that tomorrow will be a better day.

It is important that you day trade with money you actually have and can afford to lose. So have a loss bucket that consists of a certain amount of money you saved for those times when you're in a losing streak.

Ready to learn more?

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Johan Nordstrom Professional Trader Risk Management
I'm a family guy in my late 20's who learned how to trade the markets in a simple yet effective way. During university I studied investing and graduated with a master's degree in risk management. Quickly, I realized that I was onto something. I started helping friends and taking students. My students started getting results, spent less time in front of their screens, and their accounts grew consistently. Learn more about me here.
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