Market Mantra- Basic Rules For Trading

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 while trading keep the amount same in each trade and not the 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.