This are the 8 golden rules of trading that i live and breath with.
1. Trade with a Game Plan. Know your entry price, stop loss and profit target.
2. Follow the Game Plan. Following the game plan will keep you on track and protect you from your emotion and psychological fear.
3. Always trade with a Stop Loss. It is crucial that every trade comes with a stop loss price to protect your capital.
4. Diversify into different sector. You wouldn’t want to put all eggs in a basket. Diversify your portfolio of trades into different sector to reduce the risk.
5. Trade with the Trend! Trend is your friend, trade with it and the odds will be in your favour.
6. Ignore the news. Plenty of times news are planned by traders to affect the market.
7. Don’t listen to you broker. There is a conflict of interest as they are only keen to put money in their own pocket.
8. Must be discipline! I can’t emphasis the importance of being discipline to trade. This is the key element to trading and the success of your trading depends on it.
