Never risk more than 10% of your trading capital in a single trade. Always use stoploss 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 of you orders. Trade at the markets.
- Extra monies from successful trades should be placed in a separate account.
- 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 average a loss.
- Never cancel a stoploss after you have placed it.
- Avoid getting in and out of the market too soon.
- Be willingly 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.