RidetheMacro|11 GOLDEN TRADING RULES FOR TRADING 💎📌 GOLDEN RULES FOR TRADING 💎
📍 1. Don’t break your rules -
The first and foremost rule of share trading is to never borrow capital to invest in share market. Test your trading setup and its logic through paper trading or back test it with the available data. Then start with small quantities or a single lot etc. So don’t break the set rules , you made them for tough situations, just like the one you’re probably in right now.
📍 2. Don’t believe in a company -
Trading is not investment. Remember the charts and forget the press releases.
📍 3. Don’t seek the Holy Grail -
There is no secret trading formula, other than solid risk management. So stop looking for it. Always do trade keeping your trading capital into consideration. Don’t over trade.
📍 4. Don’t forget your discipline -
Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge. Maintaining stop loss is one of the key discipline parameter to be religiously followed.
📍 5. Don’t chase the crowd -
Listen to the beat of your own drummer. By the time the Crowd acts, you’re probably too late. Or too early. Don't chase the Retails.
📍 6. Don’t ignore the warning signs -
Big losses rarely come without warning. Don’t wait for a lifeboat to abandon a sinking ship.
📍 7. Don’t count your chickens -
Profits aren’t booked until the trade is closed. The market gives and the market takes away with great fury.
📍 8. Don’t have a paycheck mentality -
You don’t deserve anything for all of your hard work. The market only pays off when you’re right, and when your timing is really, really good.
📍 9. Diversification of portfolio -
Do not put all eggs in one basket.
📍 10. Don’t expect to make profit everyday -
If you consider that you can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply exit the trade without changing your strategy during the market; it may cause you double losses. Always follow stop loss. Treat trading as a BUSINESS and Earnings (profits) & Expenditure (losses). Learn to like losses as they are the part of the business.
📍 11. Never add to a losing position -
When market has given the verdict that your trade is wrong. Accept it. Just exit from the trade and don’t average it. Don’t take it personally and bring your ego in between. Don’t fight the market. It’s not a one on one thing. It’s one on many.
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