Managing the risk of ruin.Do not risk so much on any one trade that 10 losing trades in a row will destroy your account. risking 1% to 2% of your trading capital per trade is a great baseline for eliminating the risk of ruin.When you do intraday trades or positional trades keep an eagle eye on your stop loss. Before entering a trade have a clear SL defined and when it gets triggered just exit without giving second thought. Taking loss no one likes but you are in such a business where taking loss is part and parcel of your trading journey.
Only trade with a positive risk/reward ratio.Only take trades where your possible reward is at least two or three times the amount of capital you are risking in the trade.Never enter a trade blindly because your emotions say so. “How far this stock can go down!!” Well its all Supply and demand concept but we need to make sure than when we see a good RR ratio than only enter trade else just ignore it.
Always trade in the direction of the prevailing trend.Always trade in the direction of the flow of capital for your specific time frame. Shorting rockets and catching falling knives is not profitable in the long run. Imagine what will happen to you if you swim against the running water. Will you be able to Swim ? Same is the case in trading never catch a falling knife or go against the trend coz your heart say so !! It will be lethal and devastating for trading account.
Trade a robust system.Back test and study your trading method, system, or style to ensure it is a winning system historically. The key is that it had bigger winners than losers over the long run in the past.
You must have the discipline to take your entries and exits as they are triggered.You must take your entries when they trigger, your losses when they are hit, and your profits when a run is over to be a successful trader.
You must persevere through losing periods.All successful traders were able to overcome their losing periods to come back and make the big money. If you quit you will not be around for the opportunity to win big.
If you want to be a winning trader you must follow your trading plan not your fear and greed.Emotions will undo a trader more than anything else. Trading too big is due to greed, missing a winning trade due to no entry is a sign of fear, traders must trade the math and probabilities not their own opinions or emotions.