-
Never risk more than 10% of your trading capital in a single trade.
-
Always use stop loss orders.( Here you should know your loss you can give in a situation where the trade starts going against you.)
-
Never do overtrading.
-
Never let a profit run into a loss.
-
Don't enter a trade if you are unsure of the trend.
-
When in doubt, get out, and don't get in when in doubt.
-
Only trade active markets.
-
Distribute your risks equally among different markets.
-
Never limit your orders. Trade at the markets.
-
Extra monies from successful trades should be placed in a separate account.
-
Never trade to scalp a profit.
-
Never average a loss.
-
Never get out of the market because you have lost patience, or get in because you are anxiously waiting.
-
Avoid taking small profits and large losses.
-
Never cancel a stop loss after you have placed it.
-
Avoid getting in and out of the market too soon.
-
Be willing to make money from both sides of the market.
-
Never buy or sell just because the price is low or high.
-
Never hedge a losing position.
-
Never change your position without a good reason.
-
Avoid trading after long periods of success or failure.
-
Don't try to guess tops or bottoms.
-
Don't follow a blind man's advice.
-
Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.
-
When you lose don't blame it on luck.
