There are hundreds of books written in different languages with the same message which is drafted in 8 simple rules here:
- Never lose your money.
- Never forget rule no 1.
- Traders & Investors are 2 Strangers. Maintain different account for trading and investment; never mix it.
- Stop Loss could be the trigger to save you from a complete destruction. You should always have your Stop loss when in trade.
- Buy on rumor & sell on news.
- Research shows that among all day traders, nearly 40% day trade for only one month. Within three years, only 13% continue to trade. After five years, only 7% remain. 2% of them are the ones who take all the money from the market.
- Portfolio is the penalty you pay for your ignorance. Stick to a handful of companies which you could easily manage and keep track of fundamental as well as technical.
- Never Do Intraday Trading based on published news because it is available to every investor and promoters before they were even published. Often insiders will be dumping when you will be buying based on the news.