Lessons the market has taught me

#1
I was following the markets for over 4 months, and have started trading a few weeks ago. Already these are some of the lessons i have learnt and i thought i would share them with all the members. As i go forward, i will keep adding to the list:

A: Trading Nuances


  1. Always enter a stop loss when placing an order
  2. Sell orders at lower prices do not work the same as stop losses. The exchange will merely complete the order at the current price.
  3. Even if you are aiming for a multi-day investment, it doesnt hurt to put a day trade "Take profit" . Remember, the difference between your multi-day brokerage and your day trade can be as high as 1%.
  4. Always place limit orders

B: General Lessons
  1. The market is always right
  2. The market can stay insane longer than you can stay solvent
  3. Be confident in your strategy, but be flexible about exitting
  4. Trading on margins is a great way of making money. But they will eat up your account if the market moves against you.
  5. Paper trade all you want, study all you want, research all you want. The market will be your real teacher, and it will take its tuition fee :)
  6. If you are new to the markets, do not day trade.
  7. Get a good night's sleep. Tomorrow is a new trading day.
 

sudoku1

Well-Known Member
#2
I was following the markets for over 4 months, and have started trading a few weeks ago. Already these are some of the lessons i have learnt and i thought i would share them with all the members. As i go forward, i will keep adding to the list:

A: Trading Nuances


  1. Always enter a stop loss when placing an order
  2. Sell orders at lower prices do not work the same as stop losses. The exchange will merely complete the order at the current price.
  3. Even if you are aiming for a multi-day investment, it doesnt hurt to put a day trade "Take profit" . Remember, the difference between your multi-day brokerage and your day trade can be as high as 1%.
  4. Always place limit orders

B: General Lessons
  1. The market is always right
  2. The market can stay insane longer than you can stay solvent
  3. Be confident in your strategy, but be flexible about exitting
  4. Trading on margins is a great way of making money. But they will eat up your account if the market moves against you.
  5. Paper trade all you want, study all you want, research all you want. The market will be your real teacher, and it will take its tuition fee :)
  6. If you are new to the markets, do not day trade.
  7. Get a good night's sleep. Tomorrow is a new trading day.
good lessons.... but hardly remembered by many during profitable trades ;)
 
Last edited:

SwingKing

Well-Known Member
#4
I was following the markets for over 4 months, and have started trading a few weeks ago. Already these are some of the lessons i have learnt and i thought i would share them with all the members. As i go forward, i will keep adding to the list:

A: Trading Nuances


  1. Always enter a stop loss when placing an order
  2. Sell orders at lower prices do not work the same as stop losses. The exchange will merely complete the order at the current price.
  3. Even if you are aiming for a multi-day investment, it doesnt hurt to put a day trade "Take profit" . Remember, the difference between your multi-day brokerage and your day trade can be as high as 1%.
  4. Always place limit orders

B: General Lessons
  1. The market is always right
  2. The market can stay insane longer than you can stay solvent
  3. Be confident in your strategy, but be flexible about exitting
  4. Trading on margins is a great way of making money. But they will eat up your account if the market moves against you.
  5. Paper trade all you want, study all you want, research all you want. The market will be your real teacher, and it will take its tuition fee :)
  6. If you are new to the markets, do not day trade.
  7. Get a good night's sleep. Tomorrow is a new trading day.
The trader who applies these rules in practicality goes on to become a Jesse Livermore, Peter Lynch, Warren buffet and many more. The question is "How many of the traders actually have the discipline to apply it" ? :)
 

AW10

Well-Known Member
#8
Hahaha I'll make this a bit better ... this is what Mr Buffet believes in,

Rule 1. Don't Lose Money
Rule 2. Don't forget Rule 1
:)
Raunak, I haven't seen anybody who has not lost in the market. Including successful traders. Loosing money is part of trading business.

So my modiied version of these rules are

Rule 1. Don't Lose big Money.. Take Small losses.
Rule 2. Don't forget Rule 1. Never let a small loss grow bigger.

Happy Trading
 

Rkji

Well-Known Member
#9
just my 2 cents...


rule # 1 Preservation of original capital is important, keep topping up with small profits / take small losses

rule # 2 Never forget rule # 1 or else there will be no further profits or losses



:cheers:
 
Last edited:

sudoku1

Well-Known Member
#10
just my 2 cents...


rule # 1 Preservation of original capital is important, keep topping up with small profits / take small losses

rule # 2 Never forget rule # 1 or else there will be no further profits or losses



:cheers:
& MY CENT >

The elements of good trading r: (1) cutting losses, (2) cutting losses & (3) cutting losses. If u can follow these 3 rules, u may have a chance !!!!!!!!!;)

 

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