20 Simple Rules
- Trade with trend not with hope.
- Don’t do overtrading.
- Don’t add on loosing positions. Reverse averaging are mostly lose making.
- Don’t search for top and bottom. Search for Trend reversal, Break-out & Break-down levels.
- Looses are part of trading, don’t worry about that. What really matter overall profit.
- Diversification is simplest and most effective tool for traders and investors.
- Don’t exit in panic and don’t buy in excitement.
- Don’t hold too many positions. Diversify but not over-diversify.
- If trend is not clear, don’t trade.
- Don’t trade on invest on borrowed money. Only invest what you have and what you can lose without any big financial problem.
- Don’t follow rumors and news. Only follow genuine analysis with reasons.
- Withdraw some profit every month.
- Never Lose more than 2% of you capital in 1 trade or Investment.
- Plan your investment first before taking any positions.
- Trade / Invest in active, fundamentally strong companies only.
- Don’t change your plan if market or scrip is moving on right track.
- In Trading, timing is more important than time. In Investing, Time is more important than timing.
- In trading, Check News & Technical’s, In Investment check Fundamentals and economy conditions.
- Buy what is rising and sell what is declining, it works 70%.
- Don’t love your stocks, love your money