Golden Rules of trading

Always have a plan and trade according to it.

Once you have decided to do trading, its better to do some research, look out for strategy which suits your needs and your attitude towards this business. Be clear in your mind and heart, that, this is a high risk and high gain business. So prepare yourself for it.

Go with the wind

This is a business where you should go with people, who are experienced and knowledgeable in this field. Once you are experienced, you will have a better knowledge of market conditions and their effects, then, you can follow your own instinct.

When to exit……

Its better to have a limit according to your risk taking attitude instead of waiting for the things to change. Most of the time, people expect things to change, and end up incurring huge losses. Before you start trading, decide on your “STOP LOSS PRICE”.

Stick to few stocks.

It would be better if you stick to few of the stocks or positions with which you are comfortable and kept a watch on them for quite sometime. Otherwise, there is a very high probability of you making wrong decisions.

Prepare yourself….

Well before the trading, decide your entry points and exit points to avoid any hasty decisions. It is advisable to keep your losses well within 5% of your traded value in a stock. You can set the stop loss price, to avoid any high losses.

First things, first…….
Do your research work, before investing in a stock. You must know the following points before you make a decisions:-
1 Who is running the company?

2 Objective and their goal

3 Their standing in the market.

Be ready to face the roller-coaster ride.

You must know that markets are very dynamic in nature all over the world. Every now and then, you are bound to be surprised by one or some other events or sudden changes in the market. Always be ready to accept the things as it comes.

Its game of mind

Let me make it clear this is the game of mind, and it should be played with your mind. Don’t get carried away by your emotions, be patient and weigh your option with a cool and calm mind.

And above all……….

Always follow the advice of your teacher, and that is to question each and everything until you have understood everything and know what is good for you? In markets, their will be many NEWS but you must be wise enough to decide, which is best for you.