Rules to Trade in Stock Market

These are some of the trading rules which are universally valid for stock trading


* 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.