The Golden Rules of Stock Trading
The golden rules of stock trading, learned the hard way…
- Always trade with stop loss, sell at 3% loss. NEVER let it go further
- Trade in 3 to 5 stocks, less is not diversified more you cannot control
- Never risk more than 5% of your trading capital on one trade
- Cut your losses short (3%!) and let your profits run
- Never try and time a bottom to make your buy. Trying to catch a falling knife is almost impossible
- Slowly sell into a major bull market and slowly buy into a major bear market. A lot of the time though, “the trend is your friend”
“Experience is that marvelous thing that enables you to recognize a mistake when you make it again”
