Choose a liquid market (high volume, tight spreads)
Define a trading plan (entries, exits, risk limits, max trades/day)
Set account risk per trade (commonly 0.25% to 1% of account equity)
Set daily loss limit (stop trading after reaching it)
Use a consistent chart timeframe (e.g., 5m/15m) and one trade style
Mark key levels (prior day high/low, support/resistance, VWAP)
Decide entry rules (breakout, pullback, momentum continuation)
Use confirmation (volume, trend alignment, candle structure)
Place stop-loss immediately with the entry
Size the position based on stop distance (shares/contracts)
Set take-profit targets (fixed R:R like 1:2 or scale-out levels)
Manage trades with a rule (move stop to breakeven at a preset R, trail after target)
Avoid trading during low-liquidity periods or major news spikes
Keep a trading journal (setup, entry, stop, exit, screenshots, outcome)
Review performance weekly (win rate, average R, drawdowns, rule violations)
Practice with a simulator or small size until rules are consistent
Use reliable execution (limit orders when possible, avoid slippage)
Limit leverage (only what you can manage under your stop rules)
Monitor correlation and exposure (don’t stack highly correlated positions)
Verify fees and commissions (they can materially affect day-trade profitability)
Prepare an exit plan before entering (what invalidates the setup)
Follow compliance rules for your jurisdiction and account type (e.g., pattern day trader rules)
Scale up only after meeting predefined metrics (e.g., consistent positive expectancy over enough trades)