Few Rules to become successful trader

sachin divase · #1 6th October 2005, 06:02 PM

Never risk more than 10% of your trading capital in a single trade.

Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)

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.

Never limit your orders. Trade at the markets.

Extra monies from successful trades should be placed in a separate account.

Never trade to scalp a profit.

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.

Never change your position without a good reason.

Avoid trading after long periods of success or failure.

Don't try to guess tops or bottoms.

Don't follow a blind man's advice.

Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

When you lose don't blame it on luck.

sh50 · #2 6th October 2005, 09:09 PM

Good to be reminded of basics.

pradeep · #3 7th March 2006, 03:46 PM

excellent- fantastic- very good

Agilent · #4 7th March 2006, 09:18 PM

Quote:

Originally Posted by sachin divase

Never risk more than 10% of your trading capital in a single trade.

Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)

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.

Never limit your orders. Trade at the markets.

Extra monies from successful trades should be placed in a separate account.

Never trade to scalp a profit.

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.

Never change your position without a good reason.

Avoid trading after long periods of success or failure.

Don't try to guess tops or bottoms.

Don't follow a blind man's advice.

Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

When you lose don't blame it on luck.

Sachin,

Surely a good compilation... but are they your own thoughts or someones else's ?

If borrowed from a well known trader /writer / investor, should you not acknowledge the source ? So that interested members can read more from that source to broaden their knowledge

By the way, when you trade, do you never place limits (or do you always buy at the market ?). Why not ?

AGILENT

sujk101 · #5 12th June 2006, 08:58 AM

Why not to expand the same list by adding on points..??

dominicsp · #6 14th July 2006, 09:21 PM

"When the ship starts to sink, don't pray, jump" is my favourite line

Read the rest on my blog which I have collected click here

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