Ten Golden Rules For securities Dealing Success

Your stock dealing rules are your cash. When you follow your rules you make money. However if you break your own securities trading rules the likeliest outcome is that you’ll 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 group of rules they are going to be followed. It is human instinct to need to change or break rules and it takes discipline to act as agreed by 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 am going to cut my losses at five percent to 15% when I’m wrong without any question.

Some traders have an even lower toleration for loss. The key point here is to have set points ( stop loss ) in the boundaries of your toleration for loss. Stay informed about the performance of you stock and stick to your stop-loss point.

Rule 4 : Never set price targets.

This is a fashion which will let me get the most from rising stocks. Simply let the profits run. Realistically, I’m able to never pick tops. Never feel a stock has risen too high too swiftly. Be ready to give back a good % of profits in the expectation of much larger profits. The serious cash is made of trading the truly Large moves that I’ll infrequently catch.

Rule 5: Master one style.

Keep on learning and improving at this one methodology of trading. Never jump from one trading style to another. Master one style instead of become average at implementing a few styles.

Rule 6 : Let price and volume be my guides.

Never hear any viewpoint about the exchange or individual stocks you are considering trading or are trading. Everything is mirrored in the price and volume.

Rule 7: Take all valid signals that show up.

Do not make excuses. If an entry signal shows up you haven’t any excuse to not take it.

Rule 8 : Never trade from intra-day info.

There is always share price difference in the course of any trading day. Counting on this info for momentum trading can end up in some wrong calls.

Rule 9 : Take time out.

Successful stockmarket trading isn’t only about trading. It is also about emotional strength and physical fitness. Scale back the stress each day by taking time off the computer and working on other areas. A difficult trader won’t make it in the long run.

Rule 10 : Be a greater than average trader.

In order to achieve success in the stockmarket you do not need to do anything phenomenal. You need to not do what the average trader does. The average trader is inconsistent and unruly. Ask each day, “Did I follow my technique today?” If your answer is no then you’re in difficulty and it is time to recommit yourself to your stockmarket trading rules.

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