October 21, 2006

Trading Rules

These are some of the trading rules which are universally valid 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.

  • Source

    1 Comments:

    At Wed Feb 16, 11:23:00 PM PST, Blogger Anjali Guntuk said...

    Such an informative blog.DLF share price

     

    Post a Comment

    << Home