Five Golden Rules For Stock Trading success

D E M O C R A T I Z I N G W E A L T H C R E A T I O N

Golden
Rules For
Stock
Trading
Success

Trading is easy; anyone with a few bucks can do it. Making

money, however, is a whole different ball game
 Marcel Link

T
he capital markets offer plenty of opportunities for those who fully
understand the dynamics of the price action. Attempts made with
1 no knowledge or half-baked knowledge are sure-shot recipes for
disaster.
There is a fine line that separates successful traders from unsuccessful
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ones. The general perception that successful traders have access to

hidden information is unfounded. Neither do they possess what many
of you believe they do—a magic crystal, the Holy Grail of trading that
consistently generates profitable trades. It is simply that they know
the rules of the game and are highly organized and systematic in their
approach. Without trading rules or tactics, this game is akin to gambling,
which may result in an occasional windfall,but it will lead to losses in a
majority of instances.
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 Five Golden Rules For Stock Trading success
D E M O C R A T I Z I N G W E A L T H C R E A T I O N

The following rules will help you to understand the ingredients of

successful trading and will help you attain success in trading.

1 Mindset is Everything:
Trading is exciting and offers abundant opportunities every day. A
lot of people wish for that one perfect trade which will turn around their
fortunes in a snap. Successful trading cannot happen if you indulge in
impulsive trades to gain that short term thrill of gambling in the market.
For succesfull trading, it is important that you have a checklist before
executing the trade and only those stocks which fulfill all or majority
of these parameters in the checklist need to be considered for trading,
along with a proper stop loss. Remember, once your mindset changes,
everything on the outside will change along with it.

Discipline:
2 The only true winning mantra in the market is discipline. First, one
should know the rules of the game and then select a set of rules to
trade according to your personality/psychology to create a trading plan.
Discipline must be inculcated. Once in place, do not deviate from your
own trading plan.

3 Emotions:
Various emotions like greed, fear, hope and ego all influence your
decisions and need to be controlled, as these decisions are the key to
success. Ordinary traders vacillate between indecisiveness and regret.
2 As a trader, you must decide. Failure to make timely decisions is the
beginning of the end of your trading journey.
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4 Mechanics of trading:
Your trading plan/system must be easy to follow. Your entry and
exit rules should not be too complicated. All your entries must be based
on pre-qualifiers which provide you with your points of entry and exit.
After initiating your trade, you only have three exit routes for your position.
1. Stop loss, 2.Trailing stop loss,3. Target. Any other exit route means
DSIJ PVT LTD. Office No - 305, C Wing, 3rd Floor, North Main Road, Trade Center, Opposite Lane no. 6, Koregaon Park, Pune - 411001
 Five Golden Rules For Stock Trading success
D E M O C R A T I Z I N G W E A L T H C R E A T I O N

that you are either unable to keep your emotions under check or are
undercapitalized. A trading system/strategy must be tested and proven
over a period of time before it is ever used in the live market.

Risk Management:
5 This is another important element to be considered. You must
determine your entry, stop loss and exit before taking up a position.
You cannot regulate the outcome, but can certainly control your losses.
Knowing when to get in, move out and the cost of being wrong is imperative
before taking a position. No regrets thereafter. Placing stop losses at
proper places is also a form of risk management. Understanding volatility
is the key to determine a suitable stop loss level. Knowing the right levels
of volatility will ensure that your position is not exited with the routine
fluctuations in your stock and gives your trade a little more breathing
space and a chance to be right.
If you are unable to find the right strategies in your trading journey, it is
suggested to work in collaboration with a trusted and reliable research house.

✓ Recommendations on Real Time basis

3 ✓ Stock recommendations & exits via Prompt
Notifications (SMS, DSIJ Trader App &
DSIJ Live Messenger)
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✓ Receive recommendations summary at the

end of the day

DSIJ PVT LTD. Office No - 305, C Wing, 3rd Floor, North Main Road, Trade Center, Opposite Lane no. 6, Koregaon Park, Pune - 411001