By trader it is presumed the positions are taken for the day only.:
What is written are good but general. Just follow these golden rules:
1. The most important thing is discipline. 2. Whether you take short or long positions, have triggers for stop loss without fail. 3. It wll be a good idea to have profit triggers also. 3. Do'nt compete with the market. 4. Best is to take position after markets have moved. If markets have been up for 3-4 days..chances are good it will dip a bit. same if the markets have been down for many days. This must be watched. 5. Trade only in liquid scrips. Study their movements well. 6. Do'nt curse your luck if stop loss triggers. Live for another day. Markets are'nt going to vanish. They will be there again the next day. Do'nt fight the market or your emotions. 7. When in doubt, do'nt enter or if in position get out. There is always another moment, another day. 8. After taking a position, take a break, read the paper, watch the news. Do'nt keep looking at the terminal with anxitey. It will give you even if you do'nt want it. 9. With time you will learn new tricks yourself. 10.Of course you will become a good psychologist of the market. But do'nt ever think you got it all. Market always has a bigger surprise.
RE:Trading in stocks
by Junglee on Dec 06, 2007 11:57 AM Permalink
Good set of rules for novice traders. But one critical rule both yourself and the articles miss is that "Do not ever be greedy while trading, beacuse that makes you lose balance of mind"
RE:Trading in stocks
by kanu kangal on Dec 06, 2007 03:18 AM Permalink
Seems like you have market experience. My personal #1 is your # 11, then I follow all the other points you have mentioned. Since I trade in options I focus on high volatility stocks like GOOG (Google), BIDU (Baidu.com), RIMM, AAPL (apple).
RE:Trading in stocks
by veejay on Dec 06, 2007 10:25 AM Permalink
These points are the same that can be applied while gambling on a roulette in a casino.. The markets move based on variables far beyond our control.. So does the roulette.. Happy gambling
RE:Trading in stocks
by dinesh kovuru on Dec 05, 2007 10:18 PM Permalink
Appreciate your view points..!!...Hard to practise..but once in motion.shld make the practitioner successful
