10 rules of the Trade
- Never Trade with borrowed money.
- Trade with your own money which is extra available with you and even if you loose that money it should not affect your standard of living.
- Never trade with emotions.
- Always keep Stoploss for your all trades. Risk reward ration should be 1 : 2. If not then don't trade
- Don't over trade. Don't trade which is beyond your capacity.
- Always try to enter and exit at right levels. If you miss those levels don't trade and wait for next opportunity.
- You should at-least have some technical knowledge about trading. Don't just blindly follow Tips providers. Get a decent Software to judge on your own for any tips provided and then if you feel ok then only trade.
- Remember, if market is flat, it is difficult to have successful trade. It is difficult to make profit every day. If any day you loose 25% of your capital stop trading for the day.
- Always trade in the direction of market (Trend). You can get many good opportunities to enter the trade, be calm and wait for right levels. If you are not clear about the direction of the market, no harm in waiting.
- Do not panic if the market does not react positively with your trade. Don't keep changing your trades frequently. If the Stoploss is hit, wait for some time to decide on next trade. It can happen that you Stoploss was wrong but your direction was correct. Wait and see which direction market is moving.