3 Daytrading Rules

After going through my trades today, I've distilled what I learned into 3 well-known trading rules.

1. Don't add to losing positions.

My big losers today came when I added to positions that I should have exited because they were going against me.

2. Add to winning positions and have the patience to let them run.

I had some great trades that I failed to capitalize on fully because I never added to my initial position. When you have a position move in your favor, you need to "pyramid" into it in order to maximize your profits on your winning trades. Too often today when a stock moved in my favor I "locked in gains" instead of adding to the position at a smart place and "letting it run."

3. Analyze past trades.

Most importantly, today I remembered how important it is to analyze past trades. I hate doing it because it's boring, but if you want to trade full-time and expect to make money doing it, there's no better way to learn from your mistakes.