Trading Rules
Following are some trading rules which can be applicable globally to any Stock Market:
- In single investment take risk up to 10% of your capital.
- When you come to know the stage where you could suffer loss. It is important to use stop loss orders which save you from such situation.
- Always trade according to market position, movements. Never get over confident and never over invest. And trade within the fundamentals of trading for earning profit. Thus don’t do overtrading.
- The safer side is not to trade the earned profit and should not take risk of loss.
- Firstly, get ensure and study the market trend before trading.
- Any doubt during trading, quit out/stop trading and don’t get in market when you are in doubt.
- Always trade in active markets.
- Divide risk equally among different markets to face lower risk.
- Keep aside all profit in separate account to keep track of income out of trading.
10. Don’t trade in that impression that this time you will earn maximum profit.
11. Calculate the loss differently from different markets and remain them separate for next trading.
12. You should not be guided by your emotional moods to get out of the market as you lost the patience or get in the market as you are an anxious.
13. Don’t go for large losses and small profits.
14. Once you place stop loss don’t cancel it.
15. Don’t take quick decision of remaining in or quitting the market.
16. Try willingly to make money from both the sides of the market.
17. Don’t apply the strategy of buying when prices are low and selling when prices are high. Other aspects of trading should also be considered.
18. Don’t border you’re losing position get ready to suffer even worse position.
19. Remain stick on your own position, until and unless you have strong reasons.
20. After long period of gaining or loosing avoid restart trading.
21. Never estimate and predict the high and low position of market.
22. The loss is only due to your inefficiency in trading not about luck.
