Golden Rules For Trading

Stock Trading:

Stock trading is the process of buying or selling of shares on a stock exchange, where investors are represented by stock brokers. A company that floats its stocks is called a public company and is listed on a stock exchange. Stock trading can be done either physically or virtually (online).

Golden Rules For Trading:

Divide your capital into few equal parts (preferably 10), never risk more than one part of your capital on any one trade.

Trade only in active & high volume stocks/ futures.

Always use stop-losses and never over-trade and stick to your risk management rules.

Never let profit turn into a loss. Use trailing stops to protect and lock your profits.

Never get into the market because you are anxious from waiting, and never get out of the market just because you have lost your patience.

Do not guess where the top and bottom of the market is, but let the market signal its top and bottom.

Only trade with genuine risk capital, and be aware of the risk of losing.

Always trade within your capabilities, financial and otherwise.

Never let greed or fear take control over your winning positions.

Avoid Tips & Rumors. This are spread by people with vested interests.

Keywords:

trading, trading strategy, Golden Rules, stocks trading, futures trading, high volume stocks/ futures, winning positions, day trading