[1] Never trade with money you cannot afford to lose.
Always,
while trading keep the amount same in each trade and not the quantity, ex: if
have traded 100000/- in one, trade 100000/- in another rather than trading 100
shares in each trade. i.e. keep the trading amount same in each trade rather
than the trading quantity.
[2]
Risk Management.
It is
not possible to Buy at the Bottom and Sell at the Top.
One
common mistake by Traders is averaging Loss making position.
You
must exit if the trade goes against you.
Cut
your loss - Relax – Forget your loss quickly.
Wait
for next Opportunity……….. You can Win.
Always
record details of your trades and mistakes. Accept failure as a step towards
victory.
[3]
Never ever enter a trade where the risk to reward ratio is less than 1:3.
Always
trade in 2 to 3 stocks at any given point of time, how lucrative the market be,
be master of some than being jack of all, keep buffering profits, you’ll find
stock markets a wonderful place to be in...
Always
use trailing stop loss, when the trade initiated, starts bearing results, to
get maximum profit.
Always
be ready to take the profits home, if the initial trades have worked for you,
be ready to go home, and do not trade for the broker.
If the
markets are not making you confident does not trade, just for the sake of
trading, wait for clear signals.
Never
trade on news or rumors, always follow the levels, remember, news does not make
levels, it just triggers levels.
Never get panicked
or exited by the happenings on the screen, stick to the levels and stop
loss, else you’ll always end up loser.
Never follow the
mass [the people sitting beside you], for 95% of them do not understand market.
Be
ready to book loss if the ship starts to sink, do not pray, just jump.
Patience
is the name of the game, always exercise patience and restrain during the course
of trading, for if a couple of trades have worked against u, take a gap and try
to get the trend
Check on the speculative tendency, every rise or fall has a logic behind it, just do not be speculative, without logic.
Check on the speculative tendency, every rise or fall has a logic behind it, just do not be speculative, without logic.
Always
treat failures [losses] if any, as an learning opportunity, for every failure
opens the doors of success, failures should be used as a source of
motivation rather than depression.
[4] Always introspect at the end of
every trading day, next day will work wonders.
Blaming market is trying to hide
your mistakes from yourselves, making fool of one’s self, thereby losing an opportunity to
learn, markets are never wrong, the blame lies with trader.
[5] Trading in Opening and Closing hours of the market is Risky but Rewarding.
