Having the discipline to follow your rules of daytrading will limit your losses and maximize your gains. Find out how one rule can make a world of difference.
In my experience teaching thousands of individuals to daytrade, I have found that the ultimate determining factor in success is not experience, analytical ability, or risk tolerance. No, the secret ingredient in 99% of trading success stories is discipline. Some traders have natural self-control, while others develop it over time.
Achieving the discipline to follow the strict rules of daytrading will limit your losses and maximize your gains. A few easy steps can get you on the right track, and the first one I always suggest is to Never hold overnight positions.
But what if…?
Traders use the phrase “daytrading” because daytraders open and close all their positions during the same trading day. A true daytrader starts each session with no open positions, makes his or her trades during the course of that day, and ends each day the way he started it — with no open positions, no exceptions!
This is an easy rule to follow when you’re making money. If your trade is showing a positive return, it is not that hard to cash out of the position by the end of the day and take your profits.