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After years of experience I have come up with few golden rules of trading. It will be shared with everyone so that the risk factor can be minimised by every individual who reads my blog. Rules of trading can differ from person to person. An expert might not follow beginners rules.

Rule #1 : No trade is also a trade

You might not see the candlestick as per your expectation or It might not be forming the exact pattern which might be creating difficulty to analize. Leave trading on that day. It is better not trade for that particular day in order to avoid loss. Market will always open the next day. So, If you do not see the opportunity today do not trade.

Rule #2 : Have fix target

One should learn to control greed. Target should always fixed. Algo trading is very successful. If target is hit even though it was less, you must exit the trade. If your target was INR 1000 then do not wait for it to move more up. Just exit. I always shutdown my laptop, after my target is hit.

Rule #3 : No new trade after 1pm

Setup is fixed before 1pm. Direction of stock is very volatile after that. Technical indicators do not work properly in such high volatility. If you have already taken a trade before 1pm and you are waiting for target to hit, that is ok. But strictly do not take any new trade. It was yesterday that I hit my target at 11am. I started doing other activities after that, but no ore trading.

Rule #4 : No 2nd trade

One cannot predict the direction of the same stock another time in same day. 90% of time you will be wrong. Yes various other methods are there like scalping and swing trading. But to beginner, I will suggest not to do 2nd time trading in the same stock on same day. You might get success in 1-2 cases but 90% times no success.

Rule #5 : Follow your rules

Last but not the least rule is to follow all the above rules very strictly. Never break your own rules. The best trader is the one who is disciplined one. Do your own research, follow proper stop-loss. Rules are not meant to be broken. Long term success can be achieved If the rules you make and follow or the rules I have made are followed.

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