Our goal is to help you become a successful trader. Learn from the mistakes of others; there have been plenty before you. More than 95% of all Day Traders fail at this profession. Don't add your name to the statistics! The advice below has been learned the hard way. Print this page and keep it posted nearby.

Never Trade with Emotion - Emotional trading will deplete your trading account faster than taxes. You should have a logical Plan in place before you ever make the trade.

Never Hold a Day Trade Overnight - That's what Swing Trades are for. If you turn your Day Trade into a Swing Trade, then you are trading with emotion or without a Plan. Either of which can spell disaster.

Never Put All of Your Money into One Stock - Diversity is key. This is one of the riskiest things as a trader that you could possibly do. We always try to make several calls that point out both Strong and Weak stocks. This gives you the opportunity to not only diversify, but take advantage of Market direction.

Never Walk Away from a Day Trade - If you go to lunch, close the trade. If you need to run an errand, close the trade. If your stomach starts to get queasy from the roller-coaster ride that we fondly call the Market, close the trade before heading to the medicine cabinet. Stock direction can and will change on a dime, usually the minute you get up from the computer. Do not leave an open Day Trade on the table unless you can monitor it.

Never Increase Your Stop Loss - Thinking that the stock you just bought will recover from that sudden drop may cause you to increase your Stop Loss.. just a bit. Don't do it! If you have a Plan, and you should, then stick to the plan or else you are trading on emotion. Remember, it's always good when you can increase your Profit Stop, just don't be tempted to do that with your Stop Loss.

Never Exceed Your Daily Loss Limit - If you've had a bad day, and we all do from time to time, make sure that you have a firm limit of the amount you are willing to loose in a single day. This limit should be in points rather than cash. Two points are what we recommend as a Loss Limit. If you reach that limit, stop putting your money on the table for the day. Get a pen and paper and trade that way instead. Read our Loss Limit link to understand why this is very important.

Never Enter a Trade Unless it is at Support or Resistance - Entering a trade in the middle of a range will severely limit your profit potential and increase your risk unnecessarily. You should never have to ask if it is OK to enter a stock. If you do, then you don't have a Plan. If you enter a stock in the middle of a trading range, then you are not following that plan. Do not get caught up in momentum buying or selling. Know what you are going to do before you do it. Be proactive, not reactive.