First rule of trading..
ALWAYS book partial profits in a bull market..used staged profit strategy
Else the guilt of NOTIONAL LOSS supersedes the rejoice of gains.
Never cry on spilled milk.
SINGULARLY Focus on the profits not the current price
Be greedy when others are fearful and fearful when others are greedy.
Rule no. 4-
Learn to be fearful esp in a bull market
Rule no. 5-
Book profits in proportion to price appreciation(provided quantity is handsome)
Viz. 25% profits on 25% gains..
Calculate the profits in term of time horizon..
Viz. Few companies(or businesses) would give 25% profit in a month or say even in a weeks time..that’s a 1000% annual return on investment when extrapolated..!!!
Believe a statistician(or your broker) if u cant do statistics yourself..
Enter at lower levels again when opportunity permits.And there is ALWAYS such an opportunity round the corner.
Never trade in Portfolio stocks and never invest in trading stocks. It shall take years to differentiate between the two.
Rule no 10-
Withdraw 10% of profits as your take home pay check(income) and reinvest 90% elsewhere in other stock or avenue..
Never forget to pat your back for a great trade or the friend who suggested it to u..
(Crux of my experience in stocks..)