{"id":573,"date":"2012-08-20T18:51:54","date_gmt":"2012-08-20T18:51:54","guid":{"rendered":"http:\/\/priceactiontradingsystem.com\/?p=573"},"modified":"2026-08-14T22:47:35","modified_gmt":"2026-08-15T03:47:35","slug":"learn-our-price-action-day-trading-rules","status":"publish","type":"post","link":"https:\/\/priceactiontradingsystem.com\/learn-our-price-action-day-trading-rules\/","title":{"rendered":"Learn Our Price Action Day Trading Rules"},"content":{"rendered":"

While most day traders have heard about price action trading, most don’t really understand the full meaning of the term. \u00a0Many people think that price action trading<\/span> involves watching for certain chart patterns only, but that is far from the truth. \u00a0While we are interested in certain chart patterns, we do follow a list of rules as well, so yes indeed, you must learn our price action day trading rules<\/strong> in order to become a successful price action day trader. \u00a0Learning to trade with price action is really nothing more than learning to read a price chart, and like most things in this world, prices do tend to have certain tendencies that that they follow, so thus the creation of our price action day trading rules.<\/p>\n

\"Price<\/a>
Price Action Trading Rules
(myforexincome
engine.com)<\/figcaption><\/figure>\n

While these trading rules are not written in stone like some of the laws of physics might be, they do happen so often that they are reliable enough to know and understand. \u00a0After all, the only thing a true day trader needs to make money is a slight advantage, and by learning to read a price chart, you will have an advantage over most other traders. \u00a0Many people will tell you that day trading or any trading is simply gambling, but we would argue vehemently against that statement. \u00a0When we enter a trade, we are never gambling. \u00a0By learning price action and follow a list of rules, we only enter the market when the odds are stacked highly in our favor.<\/p>\n

In fact, as a gambler, all you need is a mere 1 to 1.5% advantage over your opponent to make money. \u00a0After all, that’s how the casinos make money. \u00a0If gambling was a chance game, do you think the casinos would make money in the long run? \u00a0Sure, they lose bets and they pay out big prizes on many occasions, but over the long haul, they have at least a 1% or better advantage, and this small advantage allows them to make a lot of money. \u00a0Without that advantage, they would not stay in business very long. \u00a0Trading is no different really. \u00a0If you learn how to read a price chart and you learn how to trade successfully, you will have an advantage of much more than 1 or 2%. \u00a0We have found that our price action trading strategies give us a 70 to 80% winning average, so we have a huge advantage. \u00a0Some of our traders even reach 90% wins, even though we have been told this is impossible on many occasions.<\/p>\n

In addition to our price action day trading rules, there are also some basic day trading rules that everyone must know and follow in order to be successful in the long run. \u00a0We found an article at www.marketwatch.com that discuses some of the most basic trading rules, and below is an excerpt from that article.<\/p>\n

\n
\n

If you are going to day trade, it\u2019s essential to have a set of rules to manage any possible scenario. Even more important, you must also have the discipline to follow these rules.<\/p>\n

Sometimes, in the heat of battle, traders will throw out their own rules and play it by ear \u2014 usually with disastrous results.<\/p>\n

Although there are many rules, the following are the 10 most important:<\/p>\n

1. The three E\u2019s: enter, exit, escape<\/strong><\/p>\n

Rule No. 1 is having an enter price, an exit price, and an escape price in case of a worst-case scenario. This is rule number one for a reason. Before you press the \u201cEnter\u201d key, you must know when to get in, when to get out, and what to do if the trade doesn\u2019t work out as expected.<\/p>\n

Escaping a trade, also known as using a stop price, is essential if you want to minimize losses. Knowing when to get in or out will help you to lock in profits, as well as save you from potential disasters.<\/p>\n<\/div>\n<\/div>\n

2. Avoid trading during the first 15 minutes of the market open<\/strong><\/div>\n
\n

Those first 15 minutes of market action are often panic trades or market orders placed the night before. Novice day traders should avoid this time period while also looking for reversals. If you\u2019re looking to make quick profits, it\u2019s best to wait a while until you\u2019re able to spot rewarding opportunities. Even many pros avoid the market open.<\/p>\n

3. Use limit orders, not market orders<\/strong><\/p>\n

A market order simply tells your broker to buy or sell at the best available price. Unfortunately, best doesn\u2019t necessarily mean profitable. The drawback to market orders was revealed during the May 2010 \u201cflash crash.\u201d When market orders were triggered on that day, many sell orders were filled at 10-, 15-, or 20 points lower than anticipated. A limit order, however, lets you control the maximum price you\u2019ll pay or the minimum price you\u2019ll sell. You set the parameters, which is why limit orders are recommended.<\/p>\n

4. Rookie traders should avoid using margin<\/strong><\/p>\n

When you use margin, you are borrowing money from your brokerage to finance all or part of a trade. Full-time day traders (i.e. pattern day traders) are usually allowed 4:1 intraday margin. For example, with a $30,000 trading account, you\u2019ll be given enough buying power to purchase $120,000 worth of securities. Overnight, however, the margin requirement is still 2:1.<\/p>\n

We only posted a small portion of the article, so be sure to go read all ten of the rules that they talked about, as we agree with all of them. \u00a0While these rules don’t necessarily cover all of the price action rules, they are all very good rules that we believe are important to your day trading success. \u00a0When you combine these rules with our price action trading rules and the ability to read a price chart properly, you will quickly find that your trading results will improve\u00a0exponentially. \u00a0The one thing that many traders find difficult is sticking to any kind of trading rules, so if you can over come the mental hurdle of trading, which is the hardest part of learning to trade successfully in our opinion, you will be on the road to finding success with your day trading.<\/p>\n

If you would like to learn our price action day trading rules<\/strong> and price action day trading strategies, then spend some time on our website exploring our posts and videos. \u00a0You can sign up for our free youtube chart lessons as well, as we do a video chart lesson on the ES or Mini S&P every trading day and post that video for our students. \u00a0It’s free, and all you have to do is go here to sign up<\/a>.<\/p>\n

Find out why\u00a0price action day trading\u00a0is the only way to make money consistently in today’s markets\u00a0at\u00a0https:\/\/forestgreen-chicken-354304.hostingersite.com\/pats-price-action-trading-manual\/<\/a>.<\/p>\n<\/div>\n

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While most day traders have heard about price action trading, most don’t really understand the full meaning of the term. \u00a0Many people think that price action trading involves watching for certain chart patterns only, but that is far from the truth. \u00a0While we are interested in certain chart patterns, we do follow a list of 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