http://www.marketgeeks.com/day-trader-rules/ Download Your Free Trading Report Today. Day Trader Rules provides basic rules for traders to follow to stay out of danger. Watch this short video and learn how following basic principles of trading can increase your chance to profit and decrease your risk of loss.

1. The Day Trader Rules Transcript
1. Title Slide
2. Hello Traders this is Roger Scott from Market Geeks with another video tutorial. Before I
begin want to remind you to visit market geeks for your free trading report and don’t
forget to subscribe to our video channel for trading videos and trading tips.
3. Today I’m going to discuss important day trader rules that many beginners either forget
to follow or avoid following for one reason or another. Most often traders simply lack the
required experience to know which rules can make or break their account and
unfortunately learn the hard way after the fact. I hope that this tutorial will help you avoid
some very costly mistakes and get you started on the right track.
4. Most day trading tactics are based on technical analysis and momentum techniques, with
that being said many traders completely ignore the fundamental news and reports that are
related and relevant to the stock or market that they are trading. This is one of the biggest
mistakes beginners make because markets are driven by emotions and short term
fundamental news provides clues as to what is driving the market at any present time.
5. For example if a stock is coming out with earnings after the closing bell, it will trade very
differently than on a typical trading day or if economic reports are going to be released
within the hour the index futures market will go through a choppy range bound period
prior to the announcement. Another good example is excessive volatility that typically
occurs on stock option expiration that occurs the third Friday of every month.
6. Most professional traders look at economic calendars after the closing bell and before the
opening bell so that they know all potential and foreseeable factors that can influence the
market during the following trading session.
7. Many traders begin their day disciplined and ready to execute their trading strategy
according to the rules but often times as soon as they experience a few losers or the
market doesn’t do what they anticipate will happen they forget their trading plan and
begin trading based on emotions and pure feel. This is a recipe for disaster and occurs
more often than you can ever imagine.
8. Just last week I saw a veteran trader completely ignore his exit strategy and lose several
thousand dollars in a few brief minutes. Don’t let this happen to you, follow your trading
plan accordingly and make contingencies for situations that are not likely to happen.
Most of the time traders lose their discipline when they are faced with unforeseeable
circumstances. Prepare for worst case scenarios so that if and when it happens you won’t
be caught off guard.
9. What I do each day before the opening bell is prepare for 5 worst case scenarios and I
write down each of these so if any of them occur, I know exactly what I have to do and
how I have to react. This will prevent you much undue stress and will provide you with
confidence in difficult market situations.

2. 10. There is only so much time in the session each day and there is only so much ground
prices can cover in that time. You must understand that market entry late in the day
reduces your profit potential greatly and reduces the odds of trades working out in your
favor because they simply don’t have the time to work out. Unless you are scalping
which involves taking numerous small profits every several minutes, I don’t recommend
initiating positions after lunch time Eastern Time.
11. You probably heard this rule hundreds of times but do you really follow it each and every
time. The problem occurs after the entry is placed, the mind has a great way of talking us
out of doing thing that are good for us so make sure you figure out your stop loss level
and place your protective stop order when you get your entry fill. After you practice this
exercise it will eventually become second nature, kind of like putting on a seat belt.
12. Avoiding stop loss orders is the biggest reasons why small losers turn into large highly
unmanageable positions that can turn your trading career into a nightmare quickly. Don’t
take huge risks and always protect your positions with protective stop loss orders.
13. Relative strength analysis is simply comparing the instrument that you want to trade with
a very similar instrument. For example if you are trading semiconductor stocks you
would compare the stock you want to trade with other stocks in the semiconductor
industry group or if you intend to trade e-mini futures contracts you should compare the
e-mini NASDAQ to the e-mini SP futures contract. Relative strength gives you a strong
indication of how strong or weak your stock or market is compared to other related stocks
or other markets. This offers you some very important clues as to what related stocks or
other markets are doing and can give you important information about the stock or
market that you intend to trade.
14. If you are going long you probably want to pick the strongest stock out of the industry
group and if you are trading short you would probably want to pick the weakest stock in
that industry group. Relative strength provides you with the tools to analyze markets and
compare gauge comparative strength or weakness between two related instruments.
15. That’s it for today’s tutorial, I hope you follow this short guide and create a daily routine
that you can live with and follow as part of your daily routine. Thanks for joining us for
today’s tutorial. Please don’t forget to subscribe to our video channel and visit market
geeks for your free trading report. Thanks for joining and have a great day.
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