Tuesday 21 June 2011

GOLDEN RULE OF TRADING


TRDING STATEGY IN FINANCIAL MARKET:
 In the financial market only 15%  of traders make profits in trading due adherence of disciplined, control over emotion and good risk management.
Golden Trading rules to follow in any financial markets (Save on trading desk)
§  Never risk more than 10% of your trading capital in a single trade:
§   Always use stop loss orders
§  Never do overtrading.
§  Never let a profit run into a loss.
§  Don’t enter a trade if you are unsure of the trend.
§  When in doubt, get out, and don’t get in when in doubt 
§   Only trade active stocks.
§  Never average a loss
§  Never get out of the market because you have lost patience, or get in because you are anxiously waiting.
§  Avoid taking small profits and large losses.
§  Never cancel a stop loss after you have placed it
§  Avoid getting in and out of the market too soon.
§  Be willing to make money from both sides of the market
§  Never buy or sell just because the price is low or high
§  Never hedge a losing position
§  Avoid trading after long periods of success or failure.
§  Don’t try to guess tops or bottoms.
§  Don’t try follow a blind man’s advice.
§  When you lose don’t blame it on luck.

0 comments:

Post a Comment