Those rules had made me a better trader and i think it will help some of you guys out there also when trading.
1) Always cut your losses quickly! This is by far the BEST rule of the bunch!
2) I NEVER average down. Why add more to the misery? BUT i LOVE to average UP, meaning he/she adds to a WINNING position!
3) Chart support & resistance are the two MOST IMPORTANT chart indicators u will ever need to know.
4) Trading w/o a Level-2 and live charting you're already losing the battle before it even begins...It's a big no no!
5) It's very hard to make $1,000 but much easier to make $50-$100. So i try to pick trades wisely to gain that $50 or $100 dollars at a time. Patience is key when building up a small account.
6) Nothing is worse than when you're UP on a stock only to let it turn into a loser. To avoid that you sell on way up (or down if shorting the stock) in partials! Money in bank!
7) Keep your EMOTIONS out of the trade. Four Psychological States Of Emotion – Greed, Fear, Hope, and Regret