Some Of The Day Trading Rules

By Author: Francisco Mandelbaum
Total Articles: 28
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Risk is always associated with trade. What you need to do is to figure out the risk you can take. A trader who knows how to manage the risks is less likely to suffer. Make adequate research of the trade you are in and learn new techniques.

In the current world economy, many people depend on trading as a source of income. They are either the producers or the middle men and they are to produce products for the final consumers. As the goods move from the producer to the consumer along the distribution channel, their cost will increase. The consumer will pay for the product for satisfaction while all the middle men will pay to make profits. If one wants to prosper in trading, he/she should have the basic rules of day trading to guide him/her in the running of the trade. Trading allows one to be his/her own boss. No one will tell you what to do at what time. Here are some of the day trading rules:

1.Be aware of the presence of risks and know how to handle them: In every trade there are risks. While one is busy calculating how much profits he/she can earn he/she should know that there are risks that can lead to great ...
... loses and even sometimes downfall. A trader who is aware on how to manage those risks will not suffer and would know how to avoid them as much as possible. For a trader who is prepared and such risks occur, he/she will not lose the morale of doing the trading again.

2. Make a review on the trade you transact and learn some more techniques: Whenever you do any trading activity let it be a learning tool. Ask yourself many questions about it like: should you expand? Is the marketing aspect in order? What are the challenges and how will you overcome them? Are you satisfied with the profit margins? If not what should be done? By answering these questions and many other questions arising from the previous trade, one would advance and do well in the market. An upcoming trader who learns from his/her past can be very profitable while a trader who ignores the lessons of past would make loss.

3. Know your competitors: By knowing your competitors in the market you are in a good position to know what to do to beat them. Do something that will attract more customers on your side. You can add value to your products, offer after sales services and give discounts to the customers. One can also maintain a good relationship with the customers and they will be impressed and attracted towards your side. Moreover, one should know the strengths and weaknesses of the competitors and try to adjust to be competitive in the market.

4. Know the time to do trade: Depending on the type of trading done, one should know the time patterns of his/her customers. He/she should be available that time. In most businesses, mid-day is not recommended since the customers are scarce at that time and may be busy doing something else. The times that most people do trading are morning hours and in the evening. For most trading activities it is in the evening. These are some of the day trading rules and there are very many others. For maximum profits, each trader should understand them and they will prosper in whatever the trading activity they are doing.

Author of this article enjoys listening to the CFRN Emini Futures Live Market Commentary each day and also watching the CFRN Professional Emini Traders place live trades in their Live Emini Trading Room.