10 GOLDEN RULES FOR
TRADING
- Always do your analysis before trading.
- Always have a clear and reasonable idea of your
objective.
- Never trade on emotions or other people's forecasts.
- Buy at support and sell at resistance.
- Always trade with "STOP LOSS".
- Never hold a losing position over night.
- Never add to a losing position.
- Never risk more than 5 per cent of your trading
capital on one trade.
- Do Money management which includes:-
· Diversification of portfolio - Do not
put all eggs in one basket.
·
Know the commodity, value of underlying asset
·
Proportional fund allocation
·
Risk to reward ratio - Amount of risk should never be greater than
the reward.
- If you are breaking any of the above rules … STOP TRADING… because you are out of control.
