Top 50 Golden Rules For Successful Traders

The basic advice is don't lose money
50 Golden Rules For Successful Traders

 1. Remember that stock market is a game that needs high mental capacity and less emotion burdens.

 2. A trader must believe in himself and his judgement.

 3. Always use stop loss orders, always...always... always.

 4. Eliminate the fear of losing because ‘scared’ money rarely profits.

 5. Try to forget 4 words while trading – HOPE,WISH,FEAR,PRAY- market has own system of moving UP and DOWN.

 6. Do not trade every day of every year. Trade only when the market is clearly bullish or bearish. Trade in the direction of the general market. If it's rising you should be long, if it's falling you should be short.

 7. It is sensible to test the stocks first by investing a smaller amount of money than investing bulk amount. By doing this you would be able to analyse the market conditions and reduce your loss in your part.

 8. Try to learn and improve your knowledge from your each losses.

 9. Never allow large profits to turn into losses. (Consider selling if the market move against you by 20% to 25% from your peak profits).

 10. Never add to a losing positions.

 11. Trader should study the general direction of the stock prices.

 12. Exercise discipline to avoid mistakes or bad trading tactics.

 13. Always keep of your trading results and analyse the results.

 14. Patience, Perseverance and Determination and rational trading plans are the key attributes of a successful trade.

 15. Never get emotionally involved in your trades.

 16. Do not try to profit an every trade.It is the total profit you make that matters not the matter of different days and different stocks.

 17. Be flexible, Remember that different strategies suit different days and different stocks.

 18. Decide in advance, how much risk you are willing to take and stick on your decisions.

 19. Access to timely information from reliable sources and fast execution of trades is essential for successful trading.

 20. Subscribe to a good financial journals and information services.

 21. Limit your focus to a manageable number of stocks and avoid focus on too many stocks at once.

 22. Develop positive attitude.

 23. Don’t trade in stress-full conditions.

 24. Spend considerable time, effort and practice to learn tactics of the trading.

 25. Paper trade or other alternative methods or use other simulated trading website to practice your trading techniques before you use your own ‘real’ money.

 26. Divide your capital and always keep some spare money for any buying opportunity, which may come in any time.

 27. Trade only in active and high volume stocks, because it is easy for entry, exit and stop-loss.

 28. Traders should always keep their trading plans ready before entering into any transactions.

 29. Never over-trade, trade only in 2 to 4 stocks at a time with strict stop loss.

 30. Keep strict vigil to avoid any misfortune in case of any eventuality.

 31. Always prepared to go “short” as often as you go “long”, because history shows that Bull phases have shorter duration than Bear phases.

 32. Don’t trade, if your mind is not clear.

 33. Avoid trading, if the trend is choppy, unclear or doubtful.

 34. Always be flexible and change your strategies with market conditions.

 35. Withdraw portion of your profits.

 36. Believe in charts and act on charts.

 37. Don’t trade with high Ego.

 38. Don’t trade with money you can’t afford to lose.

 39. Don’t enter into trading without trading plans.

 40. To know where and how you will take profits once you enter the trade.

 41. Traders need to develop a method of getting out of losing trades quickly.(use stop loss orders). Great traders have made many losses, but what makes them great is their ability to recover quickly from string of losses.

 42. Try to stick on your plans and strategies during market hours.

 43. Have clear plan for getting out of bad trades.

 44. Determine before you get in, where you will get out.

 45. Always sell what shows you a loss and keep what shows you a profit.

 46. Traders should be cautious and courage.

47. Always keep in mind that, how much you are willing to lose.

 48. Detach yourself from your emotions. (Fear,greed etc…)

 49. Don’t waste time dubbing in so many small stocks with minimal profits.Watch out for big stocks and concentrate on a few.

 50. Don’t rely upon tips/rum ours, formulate your own strategies.

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