Rules of Trading

1)   Find a good risk/reward entry

2)   Do not chase a trade

3)   Use the widest Support or Resistance as entry to ride some points

4)   Do not scalp ticks or single points with tight stops as it will kick you out. At the end, 80% of scalpers lose.        

5)   Always check short term indicators such as NYSE tick, Up-Down Volume, Advance-Decline after the market closes for next day trading. It will show the trend

6)   If you have a losing position of lets say 1.50 points. Make sure you take 1.50 points on your next positive trade by selling half and let rest run

7)   Always sell half at a certain pivot and let rest run with stop of your choice

8)   Remember that in an uptrend or rally day, the next day the strong support is usually about 7 points from intraday high

9)   If a lower support is hit, the bounce shall not be greater than 3.50-4.00 points or else a rally from bottom will start. Vice versa, if a decline is more than 3.50-4.00 points during a rally day, the market is signaling more downside to come

10)  Never listen to news or look for news during trading. Today’s news is old news. Do it after market hours

11) Never trade your or others opinion. Always trade the tape on your screen

12) Never listen to so called “tipsters”

13) Try to keep trading to a minimum. Your body & mind needs a rest

14) Never trade to make back your losses. Quit trading on the same day after 2 losing trades. I was not your day. You misread the tape

15) Never double up to make back a losing trade. It might end up as one.

16) Use chart setting 3, 7.5 and 12 or 13 minutes.

17) Do not trade 1 minute chart, it will usually kick your stop

18) Use 12 minute chart to see the trend and 3 minute chart for entry

19) Watch the tick and trin at certain support & resistance. It will signal a top or bottom

20) Never envy other traders in a trading room. Keep your emotions aside. It is not your money nor concern

21) Every day the Market wants your money and you want their money. Nothing else. It is not about being right or wrong nor bull or bear.

22) Sometimes your set up is not executed. Do not chase – just sit and wait. Patience is value

These were made up for Futures trading but also beneficial to trading ETF and index products.