Your stock trading rules are your money. If you follow your rules, you make money. However, if you break your rules of stock trading the result is that you will probably lose money.
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Once you have a reliable set of rules for trading stocks it is important to remember them. Here is one rewarding discipline. Read these rules before your day starts and learn the rules when your day ends.
# Rule 1: I have to follow my rules.
Naturally when making a set of rules should be followed. It is human nature to want to be different or to break the rules and it requires discipline to continue to act in accordance with established rules.
# Rule 2: I would never risk more than 3% of my total portfolio in any single stock trading.
There are many older traders. There are many brave traders. But there are no brave old traders. Protecting your financial base is essential to the successful trading of the stock market over time.
# Rule 3: I will reduce my loss to 5% to 15% when I make a mistake without asking.
Some traders have low tolerance and even loss. The important point here is to put points (stop losses) within the limits of your tolerance for losses. Stay informed about your stock performance and stick to your position of loss.
# Rule 4: No set a target price.
This is a style that will allow me to gain a lot from stock growth. Just let the profit work. In fact, I can't pick the top. Never feel that stock has gone up so fast. Be willing to return a good percentage of the profit in the hope of a much larger profit.
Big money is made by trading BIG movements that I can really catch on occasion.
# Rule 5: Hold on to one style.
Keep learning and get better with this one way of trading. Never jump from one trading style to another. They know one style better than you do in the middle of using a few styles.
# Rule 6: Price and volume should be my guidelines.
Never listen to any ideas about the stock market or individual stocks that you are thinking of selling or already trading. Everything is reflected in price and volume.
# Rule 7: Take all valid signals that appear.
Do not make excuses. If an entry signal appears you have no excuse not to take it.
# Rule 8: Never trade in-day data.
There are always variations in stock prices during the course of any trading day. Relying on this data for quick trading can lead to the wrong decisions.
#Rule 9: Take your time.
Successful stock trading is not just about trading. It is also about emotional strength and stamina. Reduce daily stress by taking time off from your computer and working in other areas. An oppressive trader will not do it in the long run.
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# Rule 10: Be an Excessive Trader.
To be successful in the stock market, you do not need to do anything different. You just have to be more discriminating with the help you render toward other people. The average trader is incompatible and does not understand. Ask yourself daily, "Did I follow my path today?" If your answer is no, you are in trouble, and it is time to re-engage in your stock exchange laws.
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