Your stock trading rules are your money. When you follow your rules you make money. However, if you break your stock trading rules the most likely outcome is that you will lose money
Once you have a reliable set of stock trading rules it is important to keep them in mind. Here is one discipline that can reap rewards. Read these rules before your day starts and also read the rules when your day ends
Rule 1: I must follow my rules
Naturally if you develop a set of rules they are to be followed. It is human nature to want to vary or break rules, and it takes discipline to continue to act following the established rules
Rule 2: I will never risk more than 3% of my total portfolio on any one stock trade
There are many old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over time
Rule 3: I will cut my losses at 5% to 15% when I am wrong without question
Some traders have an even lower tolerance for loss. The key point here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of your stock and stick to your stop loss point
Rule 4: Never set price targets
This is a style that will allow me to get the most out of rising stocks. Simply let the profits run. Realistically, I can never pick tops. Never feel a stock has risen too high too quickly. Be willing to give back a good percentage of profits in the hope of much bigger profits
The big money is made from trading the BIG moves that I can occasionally catch
Rule 5: Master one style
Keep learning and getting better at this one method of trading. Never jump from one trading style to another. Master one style rather than become average at implementing several styles
Rule 6: Let price and volume be my guides
Never listen to any opinion about the stock market or individual stocks you are considering trading or are already trading. Everything is reflected in the price and volume
Rule 7: Take all valid signals that show up
Don’t make excuses. If an entry signal shows up you have no excuse not to take it
Rule 8: Never trade from intraday data
There is always stock price variation within any trading day. Relying on this data for momentum trading can lead to some wrong decisions
Rule 9: Take time out
Successful stock trading isn’t solely about trading. It’s also about emotional strength and physical fitness. Reduce stress every day by taking time off the computer and working on other areas. A stressful trader will not make it in the long term
Rule 10: Be an above average trader
In order to succeed in the stock market, you don’t need to do anything exceptional. You simply need to not do what the average trader does. The average trader is inconsistent and undisciplined. Ask yourself every day, “Did I follow my method today?” If your answer is no then you are in trouble, and it’s time to recommit yourself to your stock trading rules
https://motivational-quotes-inhindi.blogspot.com/2021/11/motivational-quotes-in-hindi-for-get.html?m=1
You must be logged in to post a comment.