Basic Trading Rules
- Never risk more than 20% of your
trading capital in a single trade.
- Always use stop orders
- 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.
