Trading Rules
I have ‘111 Trading Rules‘, out of them I have attempted to write down some of them in detail. The rules are the experience of years, I have seen. Understanding each trading rule helps you recognize situations, where you can use the rules. With the knowledge of trading rules you can trade successfully for the rest of your lives and clear your thoughts and vision for stock market.
- Diversify your capital in different assets and also divide your trading capital in different stocks
- Be Prepared and Educate Yourself before Investing
- Be Careful of Attractive offer for Investment
- Always Mark to Market (M2M) Your Positions
- The Smarter takes longer to succeed
- Stock Markets are not Casino, Where you through few Bucks and Expect luckily to be Rich
- STOP LOSS -A weapon to minimize loss and protect the capital in stock market
- Is the Reward enough to the Risk you are taking?
- Respect the Market Not the Experts
- Avoid Intervention of Others Opinion, on Your Trade
- If a Market Doesn’t Do What You Think, Stand Aside
- Be able to Comfortably Go Short as You Go Long
- Share Prices go further than Expected
- Invest in Yourself
- There is No Investment Rule that Always Works
- Invest Where You have an Edge
- Take Portion of Your Profits and Never Risk More than 50% of Your Profit
- Is the Reward enough to the Risk you are taking?
- A Hold is as Good as Buy
- Follow the Trend
- Hedging is Not the Same as Risk Control
- Understand the Mental Accounting of Money
- Never mix it up -Investment with Intra-day trading
- Never mix it up -Investment with Life Insurance
- When Time is Up, Markets Reverse
- Stochastic -To Manage Timely Entry and Risk-Reward set-up
- RSI -To Manage Timely Entry and Risk-Reward set-up
- Understand Life-Time Rules for Investments
- Understand the Difference Between Gambling and Investing
Updating and Continued with more trading rules……
[...] Trading Rules Be able to Comfortably Go Short as You Go Long [...]
Very good blog page, keep me personally from searching it, I am really serious to understand much more about it.
Hey Pakubhai,
I have got some more rules you can use for your reference. Please go in detail with that I will like understand it/
1: Bulls, Bears Make Money, Pigs Get Slaughtered
It’s essential for all traders to know when to take some off the table.
2: It’s OK to Pay the Taxes
Stop fearing the tax man and start fearing the loss man because gains can be fleeting.
3: Don’t Buy All at Once
To maximize your profits, stage your buys, work your orders and try to get the best price over time.
4: Buy Damaged Stocks, Not Damaged Companies
There are no refunds on Wall Street, so do your research and focus your trades on damaged stocks rather than companies. More
5: Diversify to Control Risk
If you control the downside and diversify your holdings, the upside will take care of itself. More
6: Do Your Stock Homework
Before you buy any stock, it’s important to research all aspects of the company.
7: No One Made a Dime by Panicking
There will always be a better time to leave the table, so it is best to avoid the fleeing masses.
8: Buy Best-of-Breed Companies
Investing in the more expensive stock is invariably worth it because you get piece of mind.
9: Defend Some Stocks, Not All
When trading gets tough, pick your favorite stocks and defend only those.
10: Bad Buys Won’t Become Takeovers
Bad companies never get bids, so it’s the good fundamentals you need to focus on.
11: Don’t Own Too Many Names
It can be constraining, but it’s better to have a few positions you know well and like.
12: Cash Is for Winners
If you don’t like the market or have anything compelling to buy, it’s never wrong to go with cash.
13: Do Not Marry Stocks
This damaging emotion is destructive to the positive mindset needed to make investment decisions.
14: Expect, Don’t Fear Corrections
It is not always clear when a correction will strike, so expect and be prepared for one at all times.
15: Don’t Forget Bonds
It’s important to watch more than stocks, and bonds are stocks’ direct competition.
16: Never Subsidize Losers With Winners
Any trader stuck in this position would do well to sell sinking stocks and wait a day.
17: Check Hope at the Door
Hope is emotion, pure and simple, and trading is not a game of emotion.
18: Be Flexible
Recognize and be open to the unexpected shifts in the market because business, by nature, is dynamic, not static.
19: When the Chiefs Retreat, So Should You
High-level executives don’t quit a company for personal reasons, so that is a sign something is wrong.
20: Giving Up on Value Is a Sin
If you don’t have patience, think about letting someone who does run your money.
Rule 21: Be a TV Critic
Accept that what you hear on television is probably right, but no more than that.
22: Wait 30 Days After Preannouncements
Pre-announcements signal ongoing weakness, wait 30 days to see if anything has gotten better before you pull the trigger to buy.
23: Beware of Wall Street Hype
Never underestimate the promotion machine because analysts get behind stocks and can keep them propelled in an up direction well beyond reason.
24: Explain Your Picks
Buying stocks is a solitary event, too solitary in fact, so always make sure you can articulate your reasoning to someone else.
25: There’s Always a Bull Market
It’s OK if you have to work hard to find it, just don’t default to what’s in bear mode because you are time-constrained or intellectually lazy.
Thx for this great information that you are sharing with us!!!