IF YOU ARE A SHARE TRADER – TO WIN –YOU MUST HAVE SURVIVAL STRATEGIES.
1. Remember that stock market is a game that needs high mental capacity and less emotion burdens.
2. A trader must believe in himself and his judgement.
3. Always use stop loss orders, always...always... always.
4. Eliminate the fear of losing because ‘scared’ money rarely profits.
5. Try to forget 4 words while trading – HOPE,WISH,FEAR,PRAY- market has own system of moving UP and DOWN.
6. Do not trade every day of every year. Trade only when the market is clearly bullish or bearish. Trade in the direction of the general market. If it's rising you should be long, if it's falling you should be short.
7. It is sensible to test the stocks first by investing a smaller amount of money than investing bulk amount. By doing this you would be able to analyse the market conditions and reduce your loss in your part.
8. Try to learn and improve your knowledge from your each losses.
9. Never allow large profits to turn into losses .(Consider selling if the market move against you by 20% to 25% from your peak profits).
10. Never add to a losing positions.
11. Trader should study the general direction of the stock prices.
12. Exercise discipline to avoid mistakes or bad trading tactics.
13. Always keep of your trading results and analyse the results.
14. Patience, Perseverance and Determination and rational trading plans are the key attributes of a successful trade.
15. Never get emotionally involved in your trades.
16. Do not try to profit an every trade.It is the total profit you make that matters not the matter of different days and different stocks.
17. Be flexible, Remember that different strategies suit different days and different stocks.
18. Decide in advance, how much risk you are willing to take and stick on your decisions.
19. Access to timely information from reliable sources and fast execution of trades is essential for successful trading.
20. Subscribe to a good financial journals and information services.
21. Limit your focus to a manageable number of stocks and avoid focus on too many stocks at once.
22. Develop positive attitude.
23. Don’t trade in stressfull conditions.
24. Spend considerable time, effort and practice to learn tactics of the trading.
25. Paper trade or other alternative methods or use other simulated trading website to practice your trading techniques before you use your own ‘real’ money.
26. Divide your capital and always keep some spare money for any buying opportunity, which may come in any time.
27. Trade only in active and high volume stocks, because it is easy for entry, exit and stoploss.
28. Traders should always keep their trading plans ready before entering into any transactions.
29. Never overtrade, trade only in 2 to 4 stocks at a time with strict stop loss.
30. Keep strict vigil to avoid any misfortune in case of any eventuality.
31. Always prepared to go “short” as often as you go “long”, because history shows that Bull phases have shorter duration than Bear phases.
32. Don’t trade, if your mind is not clear.
33. Avoid trading, if the trend is choppy, unclear or doubtful.
34. Always be flexible and change your strategies with market conditions.
35. Withdraw portion of your profits.
36. Believe in charts and act on charts.
37. Don’t trade with high Ego.
38. Don’t trade with money you can’t afford to lose.
39. Don’t enter into trading without trading plans.
40. To know where and how you will take profits once you enter the trade.
41. Traders need to develop a method of getting out of losing trades quickly.(use stop loss orders) . Great traders have made many losses, but what makes them great is their ability to recover quickly from string of losses.
42. Try to stick on your plans and strategies during market hours.
43. Have clear plan for getting out of bad trades.
44. Determine before you get in, where you will get out.
45. Always sell what shows you a loss and keep what shows you a profit.
46. Traders should be cautious and courage.
47. Always keep in mind that, how much you are willing to lose.
48. Detach yourself from your emotions. (Fear,greed etc…)
49. Don’t waste time dubbling in so many small stocks with minimal profits.Watch out for big stocks and concentrate on a few.
50. Don’t rely upon tips/rumours, formulate your own strategies.
51. Take time to do a careful evaluation of the history of a stocks performance and keep up with latest news and stock market options.
52. Acquire as much information as possible about the company you are planning to invest in . Research through major websites of brokerage house, financial publications and mutual fund co’s.
53. Before buying, you should observe the price, volume and daily high and lows in the environment of the stock market.
54. Formulate you own list of companies you have to bought shares on, this enables you to check out the profit of each company.
55. Your ability to consistently buy low and sell high, will determine the success or failure of your investments.
56. Market winners only care about direction and duration,while market losers are obsessed with the ‘whys’.To make a profit trading,it is only necessary to know that markets are moving – not wht they are moving.
57. Stick on stocks with long term perspective, because all the big money is made by catching large market moves – not by day trading or short term stock investing.
58. Develop trading disciplines.
59. You should make your own trading decisions based on a rational analysis of all the facts.
60. Before trading,you should know where is your enter and exit points.
61. Traders should mastered the art of mastering accepting losses.
62. You concentrate on what you can control, instead of things that are beyond your control.
63. You should become realistic in trading instead of becoming a perfectionists.
64. You should aware the indicators of the trading, such as volumes, advances, declines, new highs and lows.
65. Have the ability to quickly identify failures as well as success.
66. Take advantage of technology- computers,software,electronic data – Seek out charting software and appropriate internet sites.
67. Your trading plan should consists – enter and exit points, to know technical and fundamental analysis, detach emotions, avoid bad strategies, strict stop loss.
68. Always keep your trading plan simple and actions should be take only on the basis of your trading plans, not because of fear, greed and hope.
69. Traders should have a winning attitude. – Take responsibility for all your actions, don’t blame the market or world events.
70. Don’t be influenced by the opinions of others.
71. Don’t try to guess the future-trading is a game of probabilities.
72. Try to stay calm- don’t get excited and depressed.
73. Don’t count how much money you have made or lost while you are in a trade focus on trading well.
74. Lack of knowledge, no plans,fear, greed, lack of patience and over confidence are the common factors for failure.
75. Set up strategies for rising and falling market – otherwise you are drastically limiting the number of trades you can take.
76. Simplicity is Mastery – Avoid complex strategy- stay with simple strategy.
77. Hold on your gains and cut your losses.
78. Stick on your strategies.
79. Treat every trade as the first trade you have ever made in your life.
80. Over Confidence and the false sense of invincibility based on past wins as receipe for disaster.
81. Your personality and discipline make your break the strategy that you use not vice versa..
82. Before changing your strategies, you must review both winning and losing trading; determine wheather the entry,.management and exit met every criteria in the strategy and wheather you have followed it precisely.
83. Trade with the trends, rather than trying to pick tops and bottoms.
84. Buy rising stocks and sell falling stocks.
85. Only enter a trade after the action of the market confirms your opinion and then enter promptly.
86. Don't trade many markets with little capital.
87. Don't just trade the volatile contracts.
88. Continue with trades that show you a profit, end trades that show a loss.
89. Establish your trading plans before the market opening to eliminate emotional reactions.
End trades when it is clear that the trend you are profiting from is over.
90. Use technical signals (charts).
91. In any sector, trade the leading stock - the one showing the strongest trend.
92. Use discipline to eliminate impulse trading.
93. Never average losses by, for example, buying more of a stock that has fallen. .
94. Follow money management techniques, means intelligent trading allocation and risk management.
95. Never meet a margin call - get out of the trade.
96. Trade with a plan – not with hope, greed, or fear. Plan where you will get in the market, plan how much you will risk on the trade, and plan where you will take your profits.
97. Go long when stocks reach a new high. Sell short when they reach a new low.
98. Don't become an involuntary investor by holding onto stocks whose price has fallen. .
99. cut your losses short, let your profits run..
100. A stock is never too high to buy and never too low to short. .
101. You can avoid the emotionalism, the second guessing, the wondering, the agonizing, if you have a sound trading plan (including price objectives, entry points, exit points, risk-reward ratios, stops, information about historical price levels, seasonal influences, government reports, prices of related markets, chart analysis, etc.).
102. The highest profits are made in trades that show a profit right from the start.
103. Program your mind to accept many small losses. Program your mind to "sit still" for a few large gains.
104. Learn to trade from the short side.
105. Recognize that fear, greed, ignorance, generosity, stupidity, impatience, self-delusion, etc., can cost you a lot more money than the market(s) going against you, and that there is no fundamental method to recognize these factors.
106. Standing aside is a position. Patience is important.
107. Beware of all tips and inside information. Wait for the market's action to tell you if the information you've obtained is accurate, then take a position with the developing trend.
109. Analyze your losses. Learn from your losses. They're expensive lessons; you paid for them. Most traders don't learn from their mistakes because they don't like to think about them.
110. Carry a notebook with you, and jot down interesting market information. Write down the market openings, price ranges, your fills, stop orders, and your own personal observations. Re-read your notes from time to time; use them to help analyze your performance.
111..A speculator should have enough excess margin in his account to provide staying power so he can participate in big moves.
112..No trading rules will deliver a profit 100 percent of the time.
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