RULES FOR STOCK TRADING

 

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.

Second rule-
Never cry on spilled milk.
SINGULARLY Focus on the profits not the current price

3rd law-
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..

6th Rule-
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..!!!

7th postulate-
Believe a statistician(or your broker) if u cant do statistics yourself..

8th Aphorism-
Enter at lower levels again when opportunity permits.And there is ALWAYS such an opportunity round the corner.

Theorem 9
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..

Finally,
Never forget to pat your back for a great trade or the friend who suggested it to u..

Happy Trading..
(Crux of my experience in stocks..)

If you liked this post then we suggest you to check this video of ours –

Magma Fincorp analysis

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