Do’s and the Don’ts of Trading

By | March 3, 2015
  •  Don’t get out of a trade when you are afraid get out when your trailing stop or stop loss is hit.
  • Don’t enter a trade when you are greedy for profits get in when you get an entry signal.
  • Don’t take a huge position size because you are greedy for profits, trade a planned position size based on risk and probability of the entry.
  • Don’t trade based on your personal opinions trade based on a robust methodology.
  • Don’t trade based on tips, trade based on your own trading plan.
  • Don’t have a target price let a trade go as far as it will trend.
  • Don’t marry your stock, do marry your risk management plan.
  • Don’t trade with your ego but do trade with confidence after you have done your homework.
  • Don’t just copy another trader’s strategy but do find a strategy that fits your own personality.
  • Don’t try to trade based on future predictions but do trade the current price action.

9 thoughts on “Do’s and the Don’ts of Trading

  1. Satyanarayan Vishwaroop

    Thank you very much for such a nice article. Very useful to change the mindset of traders.

  2. Bramesh Post author

    When in doubt no trade.

    Rgds,
    Bramesh

  3. T.Srinivas.

    Dear Sir,
    The market is going in opposite directions twice in a day,and the index is being managed exactly to the point ;-the result-all our stop losses are triggered ! So, waiting for the trend has become difficult.What do we do in such situations ?

  4. vivek

    Dear sir
    if its ok, can you please share that system with us as well

  5. Saurabh

    Awesome rules..Every single sentence makes sense..You are doing a great job for this profession, God bless you..

  6. tejas dave

    THANKS A LOT FOR NICE ARTICLE.
    ONE OF MY FRIEND DR. JIGNESH SHAH , HAS TAUGHT ME ONE SYSTEM OF TRADING..
    WHEN I DO RETROSPECTIVE STUDY OF LOSS MAKING TRADE, INVARIABLY IT IS HUMAN EMOTION OR GREED THAT IS AT FAULT. NOW DUE TO THIS SYSTEM AND RETROSPECTIVE ANALYSIS, LOSS MAKING TRADES ARE MAKING LESSER LOSS AND EARNING HAS INCREASED.

  7. Hiten

    Thanks a lot for wonderful works!!how can you easily write all such posts?

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