Personal Finance Blog India –

Ideal Trading Rules:

Trading may be the only Game where rules are decided by the player.Whose rules are ideal or what we can say who sticks to his rules or strategies get succeed in this game.Its really hard or difficult to stick trading strategies due to human psycology.Then also we will discuss about some ideal rules of trading.We can list some of the trading rules as follow:

  1. Let Train Come Back To The Plateform: When I have analysed my traders,most of the times I gain less or loose because I run behind the train and when I enter the train there was a U-Turn ahead.If I have waited for some correct level,I think story will be much different.Then Imp. question is how to select the level?My funda about entry level is that bottom or bounce back is likely on correction of 25-30% from recent top.E.g.Silver made a high of 75,000 and make a bottom of 49,800 i.e nearly 25% correction.Also same can concluded from nifty.If any stock do not come to your level,let it go.
  2. Do Not Cut The Golden Hen:Its common that a new trader gets consistant profit for initial period and then  becomes overconfident.He takes heavy positions in future market and get washed away.He wants to take out all golden eggs in single day.
  3. Don’t Sell: I personally feel that entry with short position should be avoided.Below there is a ground but whats above..only open space…isn’t it?We just can’t calculate the upper risk unless there is a stop loss in my mind.
  4. Take A Trading Holiday: Do Trade fasting someday.That is do not trade one of the working day,even if you find good opportunity.It will definitely enhance patience required for any trader.
  5. Take Small Loss Or Don’t Take It:Always look to exit with small losses as its easy to recover it in future.But don’t consistantly  take wrong positions also.
  6. I have read this line somewhere:”Trade when situation is as easy to pick the money lying on the  floor “.Wait for such situation to come.
Finally,there is saying that”Experience is a good School, but fees are very high”.Trader when comes to stock broker is full of wealth but zeroed of experience but when he left stock broker he becomes full of experience and …..So before paying much high fees for experience please try to follow Ideal Trading rules and avoid loosing money in future.
Disclaimer: Trading in  future market is  risky.Please judge risk capacity before investing.

Category: Commodities


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