(8) Keep Emotions Aside
It is one of the most essential & basic day trading rules for intraday traders. Day trading is a tricky business. You can make right positions in intraday trades through technical indicators.
But, emotional stability is also equally important to outperform during day trading. You can’t gain profits without keeping your emotions aside.
Generally, you should always remain emotionally calm & stable. You should not get excited too much after gaining huge profits from one or two trades. Similarly, you should not get depressed too much after losing a little amount.
If you are among those who trade under emotions then perhaps you are not a right candidate for day trading. You need to conquer your emotions first before starting day trading for generating wealth for your living.
(9) Trade Only In Few Scripts At A Time
It is one of the most common & basic day trading rules for intraday traders. Portfolio diversification is a significant step needed to reduce risk to your stock investment.
But, when it comes to day trading, you should limit share trading to just 2-3 scripts at a time. It is a wise & comfortable decision to add 8-10 large-cap & index-based stocks in your watch list.
But, you should avoid trading in more than 2-3 scripts at a time. It is due to the fact that intraday or margin trading requires close tracking of stocks during a day.
You would not be able to track or monitor more than 2-3 scripts properly at a time. Thus, limiting your trading in few scripts can help you to boost your intraday profits to higher levels.
- Day Trading Rules: Shutterstock