TRADING PRINCIPLES

TRADING PRINCIPLES

  1. Do not over leverage at any point in time. There is a high probability that over-leveraging would wash away your entire capital. Even if the returns are not significant its essential to maintain the same capital throughout the trade and without leverage.
  2. Do not put the entire capital for stock trading purpose especially the amount which is saved for the emergency.
  3. Trade in each and every trade ideas as and when provided.
  4. Do not increase the stop loss in any situation after entering the trade. Before entering the trade any number of changes can be made for stop-loss. Once the trade has been punched in the system ensure that the stop-loss is not changed.
  5. Do not panic in a temporary loss in the position which is a key for any position. We already have strict principles for following stop-loss.
  6. News and Demand & Supply are not the same thing. Never watch a news and take a trade decision.
  7. Volatility and Risk are one and the same things is a myth.
  8. Firstly don’t Panic! Secondly, don’t do anything that cab create Panic in you.
  9. Herd Mentality is different from trade replication.
  10. Being patient in Loss when stop-loss has triggered and being very unrealistic when profit is visible.
  11. Demand or Supply does not last forever.
  12. Invest or trade only if you understand the basic mechanism of trade.
  13. Averaging is a crime.
  14. Get rid of losses early and profit slowly.
  15. Understanding risk tolerance and being realistic with risk tolerance is vital. Any loss that disturbs your sleep then risk tolerance is not properly managed.Never ever copy risk tolerance from your friend’s or relatives. Risk tolerance can always be increased gradually but unrealistic risk tolerance can never take back.
  16. Diversification for trade ideas with us is not possible since we provide only index trade ideas currently and hence diversification has to be taken care of themselves. Diversification is very important and essentially has to be done with out a doubt.
  17. Never treat trading income from stock as sole income of dependencies.
  18. Now, most importantly we get our objective wrong while trading. Our primary objective is to make money rather than been right all the time.

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