MONEY | Never trade with money you cannot afford to lose |
TREND | Always ride the trend and never try to decide a trend |
SELECTION | Always select the stocks, for there are always bullish stocks in a bearish market and bearish stocks in a bullish market. |
TIMING | Never initiate your trade at the opening bell, wait for a market to make initial high and lows |
QUANTITY | Always try to trade with same amount for averaging not the same quantity , ex: if have trade 50000/- in one, trade 50000/- in another rather than trading 100 shares in each trades |
LEARNING | Blaming market is trying to hide your mistakes from yourselves,making fool of one’s self, thereby losing an opportunity to learn, markets are never wrong, the blame lies with trader. |
INTROSPECTION | Always introspect at the end of every trading day, next day will work wonders. |
R/R RATIO | Never ever enter a trade where the risk to reward ratio is less than 1:4 |
NO OF TRADES | Always trade in 2 to 3 stocks at any given point of time, how lucrative the market be, be master of some than being jack of all, keep buffering profits, you’ll find stock markets a wonderful place to be in... |
STOP LOSS | Stop loss is essence for trading, never trade without a stop loss |
AVERAGING | Averaging has no place in day trading, either u get out of the trade with the stop loss getting triggered or get the target |
SUCCESS | Always use trailing stop loss, when the trade initiated, starts bearing results, to get maximum profit. |
GREED | Always be ready to take the profits home, if the initial trades have worked for you, be ready to go home , do not trade for the broker |
CONFIENCE | If the markets are not making you confident do not trade, just for the sake of trading , wait for clear signals |
RUMORS | Never trade on news or rumors, always follow the levels, remember, news does not make levels, it just triggers levels. |
LEVELS | Never get panicked or exited by the happenings on the screen, stick to the levels and stop loss, else you’ll always end up loser |
PSYCOLOGY | Never follow the mass [the people sitting besides u], for 95% of them do not understand market |
DECISION | Be ready to book loss if the ship starts to sink, do no pray , just jump. |
PATIENCE | Patience is the name of the game, always exercise patience and restrain during the course of trading, for if a couple of trades have worked against u, take a gap and try to get the trend. |
SPECULATION | Check on the speculative tendency, every rise or fall has a logic behind it, just do not speculative, without logic. |
FAILURES | Always treat failures [losses] if any, as an learning opportunity, for every failure opens the doors of success, failures should be used as a source of motivation rather than depression. |
BY : http://www.jogibedi.webs.com
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