Golden Rules of Trading!!
1. Always use stop loss …never exceed that loss level. If you will avoid stop loss, next day market will avoid you. Never risk more than 10 per cent of your trading capital in a single trade.
2. Always try to build a portfolio.
3. Remember not all shares will be in profit.
4. Intraday investment is like full time job….it can’t be done on part time basis…
5. It is very important to set your target. Booking profits is very important and booking loss at the right time is even more important.
6. For intraday trading Choose highly liquid (high volume) shares.
7. Only invest what you can afford to lose. Never borrow.
8. Don't fight the market Trend. Always follow market trend.
9. Small is beautiful. Remember 1% per day ends up approximately 300% pa.
10. Trade with a calm mind. Use discipline and patience versus emotion and panic. When you lose don't blame it on luck. Emotion is the enemy when trading. If you don’t change your attitude towards market, you will get the same results what you are getting now.
11. Never let a profit turn into a loss.
12. Avoid trading during the first 15 minutes of the market open.[it is my personal opinion].
13. Practice paper-trading before actual trading. Study well about the markets, don’t stop studying else you will lag behind others.
14. Be willing to lose before you can win. Every Loss is markets new lesson to improve your knowledge of market action
15. Find out which events move Markets. The reaction to news is more important than the news itself.
17. Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
