| Remember that trading or investing is not a game | | | | exchange terminal or their brokers office with a view |
| just for playing. Some of the important rules which I | | | | that they want to sell a particular stock but the |
| have learnt from my more than 15 years of trading in | | | | investors sitting there convince him to rather buy |
| stocks and commodity markets. | | | | that stock. Investor should not be influenced by |
| -Never venture into stock markets without a proper | | | | judgment or opinion of others. Investors must |
| plan. You should know the money you are ready to | | | | believe in themselves and do their own home work, |
| invest, the risk you are going to take and know your | | | | after all it is their money at stake. |
| expectations. Have a clear plan, as one wrong move | | | | - Know your limits in trading i.e. you should know the |
| in stock markets can take all your money away from | | | | maximum loss you are ready to give. A trader or an |
| you. | | | | investor who does not care for the stop loss will |
| -Keep a notebook with you to note the amount you | | | | ultimately lose all his money and then a stage will |
| are losing and winning in trades. Never overtrade and | | | | come where he will only blame his luck. So a clear cut |
| trade only in limited quantity. Learn from the losses | | | | stoploss is a must before buying or shorting. |
| you make in trading. One important thing you learn | | | | -Do not enter the stock market just because you |
| from trading is patience. Failures are the stepping | | | | want to play something. Remember it is not a toy. |
| stones to success. | | | | Wait for the clear opportunity to enter. |
| -A hard reality of stock trading is that good trader of | | | | -Beginners must not do intraday trading. |
| today had been a loser in stock trading at one time. | | | | -Trading is like a war, always have a set of rules |
| -If you do not overtrade, you will never lose your | | | | which you are going to follow before venturing into |
| temper. Losing patience and overtrading go hand in | | | | trading. Do not sing praises of your winning trades. |
| hand | | | | -Do not try to earn all profits in starting. Have realistic |
| -Don't put all your eggs in one basket means i.e., do | | | | expectation and know it clearly that Rome is not built |
| not put all your money in stock markets at one go. | | | | in a day. |
| Put a part of it only. | | | | -Remember that even the best of traders are still |
| -Do not give big losses and take small profits. It | | | | learning, so one can never be a master of trading. It |
| should be big profits and small losses. | | | | is an ever learning process. After 15 years of |
| -Try and judge the effect of news. It is generally | | | | education a person become a graduate and you |
| seen that good news bring the market down and | | | | expect to be a master of trading in just an year. |
| bad news take the markets up. Treat market to be | | | | Impossible. |
| supreme and do not think that market will go as per | | | | -Risk Management is another important thing in |
| your wishes. You will have to go as per the wishes | | | | trading. Test the waters before swimming in deep. |
| of the market. | | | | Do not worry if good opportunity has gone by |
| -Do not fall in love with any particular stock. It has | | | | today, it will again come up tomorrow but if you |
| been seen that if a person has lost in a particular | | | | think today is the end of world, it might really be. |
| stock, then that person wants to earn from that | | | | - Cut your loss before booking your profits. If in one |
| stock only. | | | | stock you are having loss and in the other profit, |
| -Treat stock market trading as a business and not a | | | | then cut the one which is giving you loss before |
| "do or die" act. | | | | booking your profits. ---Never borrow money for |
| -Do not try to buy stocks at the bottom and sell at | | | | trading. Trade with money which you can spare to |
| the top, be prepared to buy stocks at the top, and | | | | lose. |
| sell at low. There is no end to a top and no end to a | | | | -Do not let success go to your head. It has been |
| fall also. We believe that if one is trading with the | | | | seen that the best of traders who earned for years |
| trend, then only one will earn. | | | | lost everything once they became over confident. |
| - It has been seen that investors go to the stock | | | | |