The Truth About Day Trading Stocks: A Cautionary Tale About Hard Challenges and What It Takes To Succeed

APPENDIX

Rules to Remember

 

 

 

This final section is designed to be a quick reference list. I have simply gathered each rule from each chapter and placed them here. Also, it is crucial that you first read the entire chapter that corresponds to the rules. The rules by themselves are not meant to teach you, they are meant to remind you.

CHAPTER 1: TRUTHS ABOUT YOURSELF TO KNOW FIRST

• Increasing your skill level is a gradual process; never fast-track it without the help of professional mentorship or in-house training.

• A Series 7 license doesn’t mean you’re a professional day trader. You still need to be trained.

• Always remain active in day trading. That’s the key to increasing skill.

CHAPTER 2: HOW EMOTIONS CAN DESTROY A TRADE

• If you feel yourself being controlled by your emotions—reduce your market exposure immediately.

• Stay consistent all day while trading—stick with 100-share blocks.

• Set realistic profit goals, and create a realistic budget.

CHAPTER 3: PREVENTING OVERCONFIDENCE

• Confidence is an emotional tool, and you must harness and control it.

• Never enter a trade without knowing your exit points.

• Once you’ve predetermined your exit points, always stick to them.

CHAPTER 4: FROM IMPATIENT TO COOL, CALM, AND COLLECTED

• Never pick entry or exits point when feeling out of control and impatient.

• Find stocks that move at least 25¢ cents every five-minute period.

• Do not trade more than 100-share blocks per trade until you become more advanced.

• Don’t expect to make ...