1. Seeking high-value transactions
As a trader, your goal is to make a profit, not to make large trades. An obvious but often forgotten rule is to know what trading patterns suit your strategy. Spend some time working hard to identify your trading goals, and never trade on a whim just because you feel like doing something.
2. Pay attention to your profit-loss ratio
This is closely related to knowing your stop loss price and trading target. When day trading, say you risk losing $100 to make $50, you may quickly discover that this is not a profitable trading strategy. You may not be as right as you think, so make sure your potential profit is a realistic multiple of the risk you're taking. That way, even if you're right slightly less than half the time, you're still guaranteed to be profitable overall.
3. Proper balance between work and rest
In the hypnotic world of flashing numbers and ever-changing charts, it’s easy to become overwhelmed. It’s a cliché, but it also means you’re losing sight of the forest. Take regular breaks, get out for a walk, and come back to the market with a fresh perspective.
4. Act accordingly
Please don't forget that you are not an investor. If something goes wrong in a trade, don't lie to yourself and tell yourself that you just need to hold on a little longer because "the market will get better" or "the market must be wrong." We are always told that self-discipline is an important part of trading. This is especially true for day traders who have shorter trading hours and a more aggressive style. Don't let one big loss ruin a lot of great trades.
5. Stop profit in time
It's easy to get carried away when a trade starts to go in your favor, and many traders feel like they're going to make a lot of money this time. Likewise, having a stop-loss price in mind when you trade will at least help you determine when you want to exit with a profit. Don't let an otherwise profitable trade turn into a loss.