| Never trade with borrowed capital, only trade with funds you can afford to risk. Divide your capital into few equal parts; never risk more than one part of your capital on any one trade. Never average a loosing trade, also avoid taking small profits and big losses. Trade only in active and high volume stocks/ futures. Always limit your losses - use stop orders. Do not try to focus on too many stocks at once, limit your focus to a manageable number. Do not guess where the top and bottom is, but let the market signal its top and bottom. Never get emotionally involved with your trades as emotions often work against you. Always keep records of your trading results and analyze the results. Remember that standing aside is a position and often the best one to take if you cannot form an opinion as to where the market is heading. Never get into a trade because you are anxious from waiting, and never get out of a trade just because you have lost your patience. Avoid trading based on rumors. Never fight markets, do not get attached to a particular idea or scenario. Market is always right, so follow the trend as it is your friend. Control greed and fear so that you can stand against the crowd when required. Have discipline so you can execute what is planned with proper money management. |
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