20 rules to stop loosing money and be a better trader

 

1 Don’t trust others opinion- its your money at stake, not theirs. Do your own analysis regardless of the information ideas  source

2 Don’t believe in company- Trading is not investing. Remember the numbers and forget the press releases. CNBC could be lying

3 Don’t break your rules – You made them for tough situations, just  like the one you’re probably in right now.

4 Don’t try to get even- Trading is never a game of catch up. Every position must stand on its merits. Take your loss with composure and take the next trade with absolute discipline.

5. Don’t trade over your head - If your last name isn’t Buffett or Jhunjhunwala, don’t trade like them. Concentrate  on playing the game well, and don’t worry about the money.

6  Don’t seek the holy grail- There is no secret formula, other than a solid risk management. So stop looking for it.

7   Don’t forget your discipline- Learning the basic is easy. Most traders fail due to lack of discipline not lack of knowledge

8   Don’t chase the crowd- Listen to the beat of your own drummer. By the time the crowd acts, you are probably too late

9   Don’t trade the obvious – The prettiest patterns set up the most painful losses. If it looks too good to be true, it is probably true.

10. Don’t ignore the warning signs-   Big losses rarely come without warning. Don’t wait for a life boat to abandon a sinking ship.

11. Don’t count your chickens- Profits aren’t books until the trade is closed. The market gives  and  takes  way with great fury.

12   Don’t forget the plan – Remember the reasons you took the trade in the first place, and don’t get blinded by volatility.

13. Don’t have a pay check mentality- You don’t deserve anything for all your hardwork.  The market only pays off when your right, and your timing is really good.

14.  Don’t join a group - Trading is not a  team  sport. Avoid acting on messages, flashes and financial tv. Your judgement may be more correct than all of them put together.

15. Don’t forget your intuition- respect the little voice   that tells you what to do, and what to avoid. That’s the voice of the winner trying to get into your thick head

16. Don’t hate losing- expect to win and lose with great equality. Expect the losing to teach you more about your winning than the winning itself.

17. Don’t fall into complexity trap – A well trained eye is more effective than a stack of indicators. Sometimes the common sense is more valuable than a complex set of indicators

18. Don’t confuse execution with opportunity - Overpriced software won’t help you trade like a pro.

Pretty colors and flashing lights make you a faster trader, not better one

19. Don’t project your personal life- The outcome of your trade is definitely likely to get affected by the situation at your home. Get your own house in order before playing the markets.

20 Don’t overthink its entertainment – Trading should be boring most of the time, just like the real job you have right now