Jul 19, 2010


  • Always have a trading plan. Never trade without a trading plan (a trading plan consists of a trading system which is made of few components)
  • Never trade without a StopLoss (Repeat 10 times).
  • Never ever hold on to a losing position. Never average/add to a losing position. (Repeat 10 times).
  • Let your profits growing. Add to your winning trades.
  • Trade on Rumors and Exit at news. But be care ful while following this strategy.
  • Never discuss your trading position to anyone else.
  • Control your emotions. You cannot control the market but definitely control yourself.
  • Never try to become a perfectionist or Best. Try to become ‘better than others’ and ‘above average’.
  • Follow your trading system. Let the system prove itself right or wrong; before changing it.
  • Never ever over trade (repeat 10 times).

  • So, what you are intraday trader, Learn basics of stock market. Learn the intermediate and long-term trend etc.
  • If you are starting new or re-starting; begin with paper trading.
  • Don’t think of earning regular salary/income in markets while trading. Because trading is not a job it’s a business.
  • Cut the losses small and let the profits grow.
  • Learn to understand the ‘general condition’ principle’ argued by Edvin Lafarve in book ‘Reminiscence of a Stock Operator’.
  • Learn to both; buy-n-trade and short-n-trade. But try–More buy-n-trade in bull market and sell-n-trade in bear phase.
  • Don’t be greedy. Remain reasonable. Don’t try to make killing once in every week. You can expect it only once in months.
  • Clearly decide what you expect from trading.
  • Tell yourself and accept the risks of trading.
  • Never bet your life-savings in markets.
  • Learn from the successful traders. Learn from unsuccessful traders more.
  • See how successful traders do it. But note that every person has to accommodate success rules as per his own attitude and composure.
  • Money management plans and risk management are as much important as much the trading system (which will decide the accuracy of your trades)
  • Remain alert that you don’t slip into speculation while trading.
  • Never turn a trading position into investment position because you don’t want to take mental hit of booking loss.
  • Maintain proper record of your activity. Also maintain a daily diary of your progress/lessons/experience in trading.
  • Take a break after continued periods of success or failure in trading.
  • Don't over concentrate your trading activity. Employ the rule of diversification. Diversify into sectors, themes, momentum ,swing, and other technical set ups. Don't put all eggs into one basket.It is far better to learn first and then place big bets.


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