Lets review some of the Top 20 Trading Rules you should always follow when investing in the stock market:
1. Don’t blame the market.
- You must take responsibility for your financial security and all of your actions.
2. Study and learn all you can.
- Choose one market to trade, many suggest the Dow Jones futures market, and become an expert in your area.
3. Be prepared for problems.
- Have a back-up phone ready with your brokers information in case of problems.
4. Have a notepad, pencil and calculator at hand to record trades.
5. Know the days and times when economic data is released.
6. Never let a winning trade turn into a loss.
7. Start with a little capital.
- Only place small stakes or paper trade if you are relatively new to trading.
8. Have a trading strategy and stick to it.
- It is no good saying one thing and doing another.
9. Always keep records of all your trades.
- Analyse these weekly or monthly to see if you can improve you performance.
10. Don’t be greedy.
- You can soon build up considerable wealth with just 1% daily profits.
11. Never trade if you are tired.
- Any medications that could affect your responses or you have a headache or you are worried about something.
12. Wherever possible always try and obtain value when placing a bet.
13. Never trade on tips or what experts say.
- Invariably throughout the day there will be several experts with opposing views. Trade what you see happening.
14. Vary your stakes.
- If market movement is a little slow use lower stakes.
15. Look for reversals in the market and trade with this new trend.
16. Do not over trade.
17. Try to make a small profit every day and be happy with that.
18. Don’t let the market get away from you.
- As soon as you can get out.