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Golden Rules For Trading
Golden Rules For Trading
Stock Trading:
Stock trading is the process of buying or selling of shares on a stock exchange, where investors are represented by stock brokers. A company that floats its stocks is called a public company and is listed on a stock exchange. Stock trading can be done either physically or virtually (online).
Golden Rules For Trading:
- Divide your capital into few equal parts (preferably 10), never risk more than one part of your capital on any one trade.
- Trade only in active & high volume stocks/ futures.
- Always use stop-losses and never over-trade and stick to your risk management rules.
- Never let profit turn into a loss. Use trailing stops to protect and lock your profits.
- Never get into the market because you are anxious from waiting, and never get out of the market just because you have lost your patience.
- Do not guess where the top and bottom of the market is, but let the market signal its top and bottom.
- Only trade with genuine risk capital, and be aware of the risk of losing.
- Always trade within your capabilities, financial and otherwise.
- Never let greed or fear take control over your winning positions.
- Avoid Tips & Rumors. This are spread by people with vested interests.
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