This three step process is a summary from the excellent book series "Differential Equations: A Dynamical Systems Approach, Higher-Dimensional Systems" by Hubbard and West.
- $(1)$ Write the equations as:
$$\dfrac{dy}{dx} = \dfrac{\frac{dy}{dt}}{\frac{dx}{dt}} = \dfrac{xy - 1}{y - x}$$
and sketch the isoclines of $(a)$ Horizontal Slope (where $y' = 0$) and $(b)$ Vertical Slope (where $x' = 0$).
- $(2)$ In each region determined by these isoclines, put together the horizontal and vertical arrows and then sketch the resultant direction field.
Here you are using the above equation, choosing sample $(x, y)$ pairs and drawing the arrows that have direction and magnitude based on the slope.
- $(3)$ Trace sample trajectories through the direction field.
Some other things that I find helpful are to determine the type of critical points which you see at the intersection of the nullclines, that is $(-1, -1)$ and $(1, 1)$ in this example. One is a stable spiral at $(-1, -1)$ and the other is an unstable saddle point $(1, 1)$. Additionally, you can look at the eigenvectors.
Putting all of these things together, we arrive at the phase portrait:

Lastly, it is worth noting, that these are not hard rules. Practice makes perfect and you'll develop your own approach in a way that is easy for you.