18 Rules For Trading

1. When in profits, they tend to book very early and during losses they wait until their holding capacity withers away,

There-by creating a worst risk to return ratio.

2. They take an exposure, which is many more times, their worth.

3. Interest, brokerage and other charges burden is ignored, which itself forms 75 to 80% of their earnings or losses at the

end of the year. (If the broker had to even refund a part of brokerage, one could wipe out one's entire loss at the end of

the year. One cannot earn even the 10 paisa brokerage paid out of the scripts traded in, where is the question of

earning in rupees)

4. Emotions are attached with every transaction they enter into. Shares bought at higher prices becomes a part and

parcel of our life, as we try to recover our loss from the same script when other scripts are moving. This is opportunity

lost out of stupidity.

5. No room for averaging as the maximum quantity is bought at the initial levels.

6. Buying at the highest selling at lowest.

7. Challenging the market at every stage while finally booking losses, due to their inability to hold on

8. Shares bought from the long-term point of view in the form of delivery get converted into short-term profits due to the

human psychology of booking profits very early and vice versa.

9. Relying too much on mouth to mouth publicity. please note there are no experts in this market, except for your own

self, as you are the best to know, what that money means to you.

10. Entering into too many securities at a time eventually losing track and accountability.

11. Cursing their luck and the markets for their own faults.

12. Ignoring reversals of the trend.

13. Always playing in the bullish trend and ignoring the bearish trend i.e. earning through going long and not going short.

14. The greed factor to earn big amounts in a single day.

15. due to earlier heavy losses by playing in big quantities, to recover the same, quantities dealt with next are very small,

compared to quantities dealt earlier. Due to this the losses are huge and profits to set off those losses are limited,

thereby being in a loss at any given time. Please note that losses can never be recovered. It is always earning and

loosing and your success depends on which is more frequent.

16. Negligence and let go attitude and inability to judge their mistakes after every loss that finally they are thrown out of

the market. The once easy earning factor and over confidence rides very high in their minds, which forces further risks,

and finally they lose 9 times out of 10.

17. Over trading when in loss on private borrowed funds which finally leads to debt trap. the good business, from where you

have diverted funds to this market to earn, will close down too.

18. Tips suggested by others only tells you when to buy/sell, but without you knowing how much to risk and how many

shares to to trade in with proper stop loss , it is all in vain