This is the revsied version of my laws of day trading, feel free to leave any comments or quesitons. Suggestions are very much appreciated.

  1. Wait for price confirmation before initiate a long or short position.

  2. Price is more important than indicators.

  3. Apply different strategies based on the market condition, let winners run in the trending market, observe the momentum, set realistic goals in the range bound market.

  4. Pay attention on the price relationship with EMA/MACD (trending market), Stochastic (range bound).

  5. Look for higher highs/higher lows or lower highs/lower lows to confirm the strong trend market.

  6. Use trend lines and pay attention on 45 degree trending up and down.

  7. Don’t try to pick top and bottom; it is very expensive way to trade.

  8. Don’t trust the support and resistance or any pivot points, take the partial profits or liquidate the trades if you concern about the support and resistance. BUT don’t place bid or offer position on the points, unless the price shows confirmation.

  9. Don’t take the trade if you are not confident with it.

  10. Don’t over trade!

  11. Cut the loss quickly in any kind of market condition, discipline is the KEY.

  12. Loss from top reaches 20% of your limit, stop trading for at least 30 minutes.

  13. Don’t try to cheat the market, because 99% of the time you will be the one who lose.

  14. Psychological management is critical. STOP trading for at least 30 minutes after experiencing 3 continuous losses.

  15. Set realistic goals everyday, stop trading for at least 30 minutes after the goal is achieved.

  16. Get enough sleep, it helps you to focus.

  17. Take it easy, it is a hyper intensive job, don’t get too emotionally involved, after all, health first, then money…