In This Post, I have explained Andrew Aziz 10 Rules of Day Trading. These Rules help to become a Successful Trader. Trading is all about Psychology, Money Management, and Position Sizing.


Andrew Aziz 10 Rules of Day Trading


Rule 1:- Day Trading is not a Strategy to Get Rich Quickly.

Explanation:- If You have come in Day Trading because You will become rich Quickly then You will Loss your Money in Stock Market with Mentality. Day Trading is a Profession, not Gambling.


Rule 2:- Day Trading is not easy. It is a Serious business and You should treat it as Such.

Explanation:- Most Traders assume Day Trading is easy but This is not True. Day Trading is not a Job. It is a Serious Business, You have to work very hard to understand it.


Rule 3:- Day Traders do not hold Positions Overnight  If necessary, You must sell with a loss to make sure you do not hold onto any Stock Overnight.

Explanation:- If You Buy and Sell The shares of any company on the same day. Then this Process is called Day Trading. In Day Trading, You had to square off your Position before 3:15 PM even If You are in Loss.


Rule 4:- Success in Day Trading comes from Risk – Management, finding low–risk Entries with High Potential Reward. The Minimum Win: Loss Ratio for me 1: 2.

Explanation:- If You want to Succeed in Day Trading, You have to find Low – Risk High Reward opportunities. Your Risk-Reward comes from Money  – Management and Proper Entry.


Rule 5:- Your Broker will Buy and Sell Stocks for You at the Exchange. Your Only Job as a Day Trader is to manage Risk. You cannot be a Successful Day Trader without excellent Risk – Management Silla, Even If you are a master of many Effective Strategies.

Explanation:- If You also know 100’s of strategies but If You don’t know how to manage Risk then You can not make money in the Stock Market. In Trading, Risk Management is Everything. So work on Your Mindset.


Rule 6:- Retail Traders trades only Stocks in Play, High Relative Volume Stocks that have Fundamental Catalysts and are being traded regardless of the overall market.

Explanation:- Retail Traders should always trade in High Volume Stocks. Traders should stay away from such Stocks, Which sometimes have Upper Circuit and Lower Circuit.


Rule 7:- Experienced Traders are like guerrilla soldiers. They jump out at just the right time, Take their Profit, and Get Out.

Explanation:- You have to be like those Experienced Traders Who enter at the Right Time, Book Profit at right time, and get out of the Market.


Rule 8:- Hollow Candlesticks, Where the close is greater than the Open, Indicate Buying Pressure. Filled Candlesticks, Where the close is less than the Open, Indicate Selling Pressure.

Explanation:- Candlesticks are the most important part of Price Action Trading. Your Chart reading skill should be so good, That You should know by looking at whether the Buying Pressure is High or Selling Pressure.


Rule 9:- Indicators only indicate, they should not be allowed to dictate.

Explanation:- If the Indicators worked in the Stock Market, No one lost Money in Stock Market, but the reality is that most retail traders lose their money by making the decision on the basis of these Indicators.


Rule 10:- Profitable Trading does not involve Emotions. If you are an emotional Trader, You will lose your money.

Explanation:- If you are an Emotional Trader, You can not survive in Stock Market. Retail Traders make losses only because they trade on the basis of Emotions. So If you want to be a Successful Trader so You have to master your Emotions.

Read : What is Day Trading and How Day Trading Works?

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