Your stockmarket dealing rules are your money. When you follow your rules you earn money. However if you break your own stock market dealing rules the likeliest outcome is that you'll lose cash.
Once you have a trusty set of stock trading rules it's vital to keep them in mind. Here is one discipline that will receive rewards. Read these rules before your day starts and also read the guidelines when your day ends.
Rule 1: I must follow my rules.
Naturally if you develop a set of rules they are going to be followed. It is human nature to want to alter or break rules and it takes discipline to continue to act as per the established rules.
Rule 2: I will be able to don't ever risk more than 3% of my total portfolio on any one stock trade.
There are several old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over a period.
Rule 3: I will cut my losses at 5% to 15% when I am wrong without any question.
Some traders have an even lower tolerance for loss. The key reason here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of you stock and stick to your stop-loss point.
Rule 4: Never set price targets.
This is a fashion that will allow me to get the best from rising stocks. Simply let the profits run. Realistically, I will never pick tops. Never feel a stock has risen too high too swiftly. Be happy to give back a good proportion of profits in hopes of much bigger profits.
The serious coin is made of trading the really BIG moves that I am able to now and then catch.
Rule 5: Master one style.
Continue to learn and improving at this one method of trading. Never jump from one trading style to another. Master one style rather than become average at implementing a few styles.
Rule 6: Let price and volume be my guides.
Never listen to any opinion of the stockmarket or individual stocks you are considering trading or are already trading. Everything is mirrored in the price and volume.
Rule 7: Take all valid signals that show up.
Do not make excuses. If an entry signal shows up you have got no excuse not to take it.
Rule 8: Never trade from intra-day data. There's always stock price difference within the course of any trading day. Relying on this data for momentum trading can end up in some wrong choices.
Rule 9: Take time out.
Successful stockmarket dealing isn't solely about trading. It's also about emotional strength and physical fitness. Scale back the stress each day by taking time off the PC and working on other areas. A difficult trader won't make it in the long term.
Rule 10: Be a greater than average trader.
So as to achieve success in the stock market you don't need to do anything phenomenal. You just need to not do what the average trader does. The average trader is inconsistent and unruly. Ask yourself every day, "Did I follow my technique today?" If your answer's no then you're in trouble and it is time to recommit yourself to your stock market trading rules.
Once you have a trusty set of stock trading rules it's vital to keep them in mind. Here is one discipline that will receive rewards. Read these rules before your day starts and also read the guidelines when your day ends.
Rule 1: I must follow my rules.
Naturally if you develop a set of rules they are going to be followed. It is human nature to want to alter or break rules and it takes discipline to continue to act as per the established rules.
Rule 2: I will be able to don't ever risk more than 3% of my total portfolio on any one stock trade.
There are several old traders. There are many bold traders. But there are never any old bold traders. Protecting your capital base is fundamental to successful stock market trading over a period.
Rule 3: I will cut my losses at 5% to 15% when I am wrong without any question.
Some traders have an even lower tolerance for loss. The key reason here is to have set points (stop loss) within the limits of your tolerance for loss. Stay informed about the performance of you stock and stick to your stop-loss point.
Rule 4: Never set price targets.
This is a fashion that will allow me to get the best from rising stocks. Simply let the profits run. Realistically, I will never pick tops. Never feel a stock has risen too high too swiftly. Be happy to give back a good proportion of profits in hopes of much bigger profits.
The serious coin is made of trading the really BIG moves that I am able to now and then catch.
Rule 5: Master one style.
Continue to learn and improving at this one method of trading. Never jump from one trading style to another. Master one style rather than become average at implementing a few styles.
Rule 6: Let price and volume be my guides.
Never listen to any opinion of the stockmarket or individual stocks you are considering trading or are already trading. Everything is mirrored in the price and volume.
Rule 7: Take all valid signals that show up.
Do not make excuses. If an entry signal shows up you have got no excuse not to take it.
Rule 8: Never trade from intra-day data. There's always stock price difference within the course of any trading day. Relying on this data for momentum trading can end up in some wrong choices.
Rule 9: Take time out.
Successful stockmarket dealing isn't solely about trading. It's also about emotional strength and physical fitness. Scale back the stress each day by taking time off the PC and working on other areas. A difficult trader won't make it in the long term.
Rule 10: Be a greater than average trader.
So as to achieve success in the stock market you don't need to do anything phenomenal. You just need to not do what the average trader does. The average trader is inconsistent and unruly. Ask yourself every day, "Did I follow my technique today?" If your answer's no then you're in trouble and it is time to recommit yourself to your stock market trading rules.
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