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Some of the most important things to be aware of when trading are, Tape Reading, Technical Indicators and basic Discretionary Trading Rules. Being able to understand how to apply these methods when trading is a huge factor when learning how to trade. These skills are hard to learn and a little tough to apply while trading.  Throughout this article I will explain these rules and how to use them, so you can have a better grasp and a better knowledge about them.   What are technical indicators?   Used primarily by short-term day traders, technical indicators apply a specific formula to the price of a security.   These ‘indicators’ look to predict future market direction by using previous price patterns.   Example of the most common technical indicators includes Moving Averages, Relative Strength Index, Stochastic, MACD and Bollinger Bands. Day Traders use these ‘indicators’ to identify specific times in the market when the opportunity for winning trades is the greatest.   What are Discretionary Trading Rules?   Discretionary trading rules are one of the most important aspects of consistently profitable day trading.   Just like any business, you must have a business plan or a set of specific instructions on how to run your business. Everything from start-up capital, research and development, operational expenses and even the re-investment of your profits or the management of losses are included in this plan.