Rules for Stock Trading

·         Never risk more than 10% of your trading capital in a single trade.

·         Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)

·         Never do overtrading.

·         Never let a profit run into a loss.

·         Don't enter a trade if you are unsure of the trend.

·         When in doubt, get out, and don't get in when in doubt.

·         Only trade active markets.

·         Distribute your risks equally among different markets.

·         Never limit your orders. Trade at the markets.

·         Extra monies from successful trades should be placed in a separate account.

·         Never trade to scalp a profit.

·         Never average a loss.

·         Never get out of the market because you have lost patience, or get in because you are anxiously waiting.

·         Avoid taking small profits and large losses.

·         Never cancel a stop loss after you have placed it.

·         Avoid getting in and out of the market too soon.

·         Be willing to make money from both sides of the market.

·         Never buy or sell just because the price is low or high.

·         Never hedge a losing position.

·         Never change your position without a good reason.

·         Avoid trading after long periods of success or failure.

·         Don't try to guess tops or bottoms.

·         Don't follow a blind man's advice.

·         Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

·         When you lose don't blame it on luck.