22 Most Important
Rules Of Trading
1. Always Cut your losses and let your profits run. Take small losses and large wins.
2. Once you have defined
the trend, trade only in that direction.
3. Always have a game plan.
Never enter a trade unless you know
where you should get in and where you
should get out.
4. Always use a protective stop to limit your losses.
Be patient. Wait for the right opportunities. Don't
just trade for the sake of
5. If the reason you entered the trade is no longer
there, get out.
6. Do your homework. By the time you enter a trade you should already know what you are going to do
and what you expect from the trade. Placing
a trade should be the easiest part of trading. If
7. If your method of trading is working, don't
change it.
8. The market is never too high to buy or to low
to sell.
9. Every trader has losses; don't let your losses
get to you psychologically.
10. There is no such thing as an indicator that is
a 100% right all the time.
11. Use common sense along
with your method of trading. If your
12. The market is always
right.
13. Use money management
in your trading.
14. Only trade markets you
are sufficiently capitalized. Never trade with
money you cannot afford to lose.
15. Be disciplined.
If you hit your profit target, take it. Don't get
16. Don't try and regain
all your losses in one trade.
17. Don't blindly follow
someone else's recommendations. Do your
18. If it's not going well,
take a break for a few days or weeks. Make
19. Don’t trade to many markets. It’s
better to be an expert in one
than
a novice in many.
20. Never meet a margin
call. If you have a margin call it means something went wrong with your trade.
21. By
the time everyone knows it's a bull or bear market, it's probably to late.
22. Loses in trading have
no bearing on you as a person.
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