The Ultimate Day Trading Framework: Rules for Consistent Success

These are general trading rules that serve as a foundation for your strategy. You must work on them further to develop a precise plan tailored to your preferences, the markets you trade, your time zone, and other related variables. The goal is to create a clear, actionable framework that you can follow consistently every single trading day. 🔍📈📊

General Trading Rules
Categorize Observations into Binary Decisions

Simplify decisions into two options (e.g., Risk On vs. Risk Off).
Decision determines the trade approach. ⚖️
Follow a Rule-Based System

Rules are essential for processing setups quickly and accurately. 🛠️
Focus on keeping the process simple and systematic.
Market Conditions
Trend vs. Trading Range

Trend:
Look to swing more of your position.
Uptrend: Prioritize buying. 📈
Downtrend: Prioritize selling. 📉
Trading Range:
Buy low and sell high (scalping focus). 💱
Risk Management

Evaluate Risk On vs. Risk Off for each setup. 🚦
Probability Assessment

Categorize setups as High Probability vs. Low Probability. ✅❌
Execution
Stay Agile

Constantly assess market conditions and adapt strategies accordingly. 🔄
Focus on Key Setups

On average, expect about 40 setups per day.
Be selective and only act on setups that meet your criteria. 🎯
By personalizing these rules and following them diligently, you can bring clarity and consistency to your trading process.