1. Plan your barter and barter your plan: You accept to accept a trading plan to succeed. A trading plan should abide of a position, why you enter, stop accident point, accumulation demography level, additional a complete money administration strategy. A acceptable plan will abolish all the affections from your trades.
2. The trend is your friend: Do not blade the trend. If the bazaar is bullish, go long. On the reverse, if the bazaar is bearish, you short. Never go adjoin the trend.
3. Focus on basic preservation: This is the a lot of important footfall that you accept to yield if you accord with your trading capital. You basic ambition is to bottle the capital. Do not barter added than 10% of your drop in a individual trade. For example, if your absolute drop is $10,000, every barter should absolute to $1000. If you don’t do this, you’ll be out of the bazaar actual soon.
4. Know if to cut loss: If a barter goes adjoin you, advertise it and let go. Do not authority on to a bad barter acquisitive that the amount will go up. A lot of likely, you end up accident added money. Before you access a trade, adjudge your stop accident price, a amount area you accept to advertise if the barter turns sour. It depends on your accident contour as of how abundant you should set for the stop loss.
5. Yield accumulation if the barter is good: Before entering a trade, adjudge how abundant accumulation you are accommodating to take. If a barter turns out to be good, yield the profit. You can yield accumulation all at one go, or yield accumulation in stages. If you’ve recovered your trading cost, you accept annihilation to lose. Sit bound and watch the accumulation run.
6. Be emotionless: Two better affections in trading: acquisitiveness and fear. Do not let acquisitiveness and abhorrence access your trade. Trading is a automated action and it’s not for the affecting ones. As Dr. Alexander Elder said in his book “Trading For A Living”, if you sit in foreground of a acknowledged banker and beam how he trades, you ability not be able to acquaint whether he is authoritative or accident money. That’s how emotionally abiding a acknowledged banker is.
7. Do not barter based on a tip from a acquaintance or broker: Barter alone if you accept done your own assay and analysis. Be an abreast trader.
8. Accumulate a trading journal: If you buy a bill or stock, address down the affidavit why you buy, and your animosity at that time. You do the aforementioned if you sell. Analyze and address down the mistakes you’ve made, as able-bodied as things that you’ve done right. By apropos to your trading journal, you apprentice from your accomplished mistakes. Improve on your mistakes, accumulate acquirements and accumulate improving.
9. If in doubt, break out: If you accept agnosticism and not abiding area the bazaar or banal is going, break on the sideline. Sometimes, accomplishing annihilation is the best affair to do.
10. Do not overtrade: Ideally you should accept 3-5 positions at a time. No added than that. If you accept too abounding positions, you tend to be out of ascendancy and accomplish affecting decisions if there is a change in market. Do not barter for the account of trading.