Day Trading Rules

We live in an age where anyone can open a brokerage account put some money into it and start day trading without any day trading education or the slightest understanding of what day trading rules are.


It is as easy as downloading an app like webull or robinhood these apps
will set up a trading account for you in a matter of minutes. This is one
of the main reasons why they say 90-95% of day traders or stock 
traders fail and lose all the money in their day trading account aka blow up a trading account.

 

Trading or investing in the stock market has become easier over time but day trading education is something most people do not bother looking into before using their hard-earned money in an open market. In this article, we will talk about the importance of day trading rules and how day trading rules can help you
conserve your hard-earned money, your mental capital, and possibly help improve your overall performance as a day trader.

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How Do Day Trading Rules Work?

 

It takes a long time to not only learn the basics of day trading but it also

takes a long time to master one’s own emotions which are a huge part

of day trading. This is why you hear most intermediate, experience and

both non-profitable and profitable traders talk about day trading rules

and how they help day traders tremendously.

 

You see, any trader that has been day trading for some time has a set of rules they are working on or have established fully into their day trading journey. These day trading rules can vary from position sizing, time of day they trade, days they trade to what equities they trade even the pricing of said equities could be a part of their rules and more.

 

Day traders place these day trading rules after reviewing their statics they could notice something as simple as they lose more money at a specific time of day then they

set a rule where they do not trade that specific time frame and it cuts their losses down on average by a fair amount.

These rules have helped me out tremendously

 

My Day Trading Rules

 

  • I do not typically trade stocks under $1.00

  • I try not to take trades until 9:45 am EST

  • I do not chase momentum but wait for patterns to develop.

 

These are just some of my day trading rules that work for me and make me a better trader.

Final Thoughts


Day trading rules help us conserve our capital in our day trading
accounts, day trading rules help us conserve our mental capital so we
don’t get down on ourselves and day trading rules help us stay in the
game longer so we can learn and get closer to the ultimate goal of
being a consistently profitable day trader.