Top 3 Trading Rules To Improve Your Intraday Trading

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Top 3 Trading Rules To Improve Your Intraday Trading

Top 3 Trading Rules To Improve Your Intraday Trading


Trading Rules play a major role in defining the profitability of intraday trading. When amateur traders enter the market, they have completely different thought processes than professional traders. That is the reason why most of the new traders start by losing money.

The biggest difference between a successful trader and a loss-making trader is the capability to follow Trading Rules. Professional traders follow all the trading rules that they have set for themselves; on the other hand, amateur traders lose money because they break their own trading rules.

One important thing to understand here is that making trading rules is half of the task, and the other half is following them with 100% discipline, so to become profitable in Intraday Trading, you must be able to follow your trading rules.

In today’s article, I am going to explain to you the top 3 trading rules that will definitely improve your intraday trading if you follow them with 100% discipline.


Trading Rule No 1 – Calculate the potential loss and position size accordingly.


In intraday trading, there is a saying that your targets should be written with a pencil and your stop losses must be written with a marker to avoid big losses in intraday trading. There is only one way to make big money in intraday trading, and that is not to lose big money.. If you are not losing big, you will eventually make a lot of money through trading.

So, always calculate your loss before entering into the trade and take your position accordingly. So that, in case your stop-loss gets hit, you will be comfortable with that loss.

Once you calculate the potential loss, you need to accept it in your mind first. Calculate your loss first and always assume that whenever you enter a trade, you will lose that much money. It gives you psychological comfort while trading.

If you are not accepting the loss in your mind, you will always expect profit from every intraday trade, and whenever your stop-loss is going to hit, you will get hurt. So, it is always better and expected from every good trader that he should accept the potential loss in his mind before entering into any trade.


Trading Rule No 2 – Do not overthink & adjust your stop loss frequently.

Let the market take your stop-loss. Whenever you take the trade with a certain analysis, you should stick to it until the end. The reason I am saying this is because when traders enter into the trade, and when a trade goes slightly against them, they cut their position out of fear.

Cutting your position out of fear is the worst thing to do in trading.

I have often seen traders cut their position out of fear, and from that point, trade goes in their direction, and they close their trading day with a slight loss and a lot of frustration instead of handsome profits.


Trading Rule No 3 – Journalise every trade you make and Review your trading journal!

This is one of the essential trading rules every trader should follow. Whenever you are in a trade, your mind and brain work with high intensity, which is why you become exhausted if you are continuously trading for the day.

It is always good to take a short break once you are out of one trade and then look for another opportunity. This short break will allow your mind and body to relax for a while, and then you can come back to find new opportunities with a more focused approach. These are very small and simple hacks, but they will have an immense impact on your trading performance if you follow them religiously.

A trading journal is your best trading mentor, and hence it is always important to review your trading journal once you are done with trading.

In case you don’t know how to write a trading journal, then I have posted an entire blog explaining how you can write your trading journal. You can click here to check that blog.

When you review your trading journal, you will automatically get to know where you are making a mistake or what needs to be improved in your trading system in order to trade effectively in the market.

Always take daily, weekly, monthly, and yearly reviews of your trading journal. You will be amazed to see the drastic change in your trading performance over a period of time.

So these are the trading rules you should follow while doing intraday trading. I hope that through this article, I was able to contribute to the betterment of your trading. Don’t forget to share us across all your social media handles if you like this article.

Happy Learning!

 If you want to know more about Risk Management, you can refer to our previous blog on Importance Of Risk Management In Trading


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    1. Glad that you find the blog helpful; we constantly try to bring helpful blogs for our traders and will continue doing so.

    1. Glad that you find the blog helpful; we constantly try to bring helpful blogs for our traders and will continue doing so.

    1. Glad that you find the blog helpful, we constantly try to bring helpful blogs for our traders and will continue doing so.

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