Do's & Don'ts of Trading

1.    Use small share size…at least for many months. Large wins at the
beginning mean large exposure. Don’t take large risks until you build a
buffer.

2.    When you doubt it, get out! Deal with reality. You entered the trade for a
a particular set of reasons, if the trade goes against you, you were wrong.
Admit that and move onto the next trade. Flats are winners.

3.    Avoid News based! Often time news is already
reflected in the stocks price by the time it comes out. However,
understanding what is happening with the market overall is of Vital
importance in planning your next attack.

4.    Don’t add more lots/quantity to losing positions.

5.    Don’t Overtrade. Trade more only as you get experience and only if you’re
winning…not the opposite.

6.    Understand your risk exposure at all times. Keep checking the Charts, Index, and its peer companies. A trade can turn even before reaching the target, ANY TRADE CAN GO WORNG.

7.    Have a daily limit loss. Not only daily, but as every trade has an SL, Plan weekly and 
monthly stop losses.

8.    Do not Take Overnight Positions! (Traders Only) Anything can happen after hours. Practice
good risk management by not taking home anything, you will sleep much
better!

9.    Don’t trade with problems. If you have technical/mental problems, exit your trade
and sit on your hands until the problems are fixed. Trading opens you up to a
wealth of unknown variables. Emotional problems can be even worse!

10.    NEVER trade with money you can’t afford to lose.