After Spending Six years in the market trading and investing I have learnt some valuable lessons, and as the saying goes " Experience Is The Best Teacher". So keeping in mind the experience gained traders should follow some basic rules and these rules should become a natural process when it comes to executing any trade.
1. Importance should be given to maximize profits and not the number of traded exicuted.
2. Never risk more than Three percent of your capital.
3 Buy into Initial Strength (Rise in price with rise in volume), Sell into Initial Weakness (Fall in Price with rise in Volume).
4. Dont be a Compulsive Trader, be patient in taking the right entry and exit.
5. A good trade will move in your direction instantaneously, if you feel you have made a wrong decision dont hesitate to exit the trade.
6. Always keep a Stop Loss to protect your capital.
7. Always have a Money Management System in place, it is the key to successful trading.
8. Trade every signal your trading system generates.
9. Never trade correlated stocks, an example of this would be Infosystech and Wipro.
10. Trade the potential big moves and follow the trend never go against it this way the odds are with you.
11. Never listen to news, stay away from news and follow your trading system, the main news is what the Price is doing.
12. Dont ever listen to your broker......if you are smart you know why.
13. And finally have discipline in following all the above. (This is the most Important Rule).
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