- Trade only with the money you can afford to lose. Do not take huge positions. You will not be able to manage the emotions
- Do not trade to get rich quickly, or because you think it is easy money. The stock market is among the toughest ways to make money
- Do not trade when you are in an emotionally unstable place. Trading is all about psychology
- Trading is all about learning, analysis, and planning. Take time out to analyse stocks every day, and make a complete trading plan — Including Entry, Exit, Stop Loss, contingency plan, etc
- Always Always Always keep stop losses. A stop loss is an order in the system and not a number in your mind
- Trade with the trend. Buy a strong stock on pullbacks, and sell a strong stock on upticks
- Be observant in the market. This does not mean look at the market all the time, but this means analyze stocks EOD, and put in some effort
- Be patient for the right trading opportunity to come. The market will always be there, and you will always find an opportunity
- Do not trade all the time.
- Most of the times, do not take that trade. Sit on the sidelines and watch. Not having a position is a position
- Wait till you find the right trade, and be aggressive about it
- Keep taking breaks from trading
- Do not trade too many stocks at the same time
- Know your charges very well — The taxes, the brokerage, etc
If you would like to read more about the right attitude to trading, please visit the Sensibull Manifesto. I hope you find this useful. Thank you!
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