Top 10 rules for successful trading

10 Tips you can follow for successful trading

In today's investment world, to become a successful trader requires a lot of

training and rich experience in this field. If you are a beginner in this trading
world, you need to be patient and wait for your investment to grow more.
You should treat trade like a business, not a hobby or causal work. You
need proper strategies and plans to improve in it You need to set realistic
expectations for your trade.

Basic rules for successful trading:

1. Use a trading plan for each investment:
a trading plan represents a set of written rules, including entry, exit and
purchase by each investor. This way, you can track all investments and plan
your next purchase accordingly.

2) Use technology to gain advantages:

Technology helps to accurately analyze all the above data, thereby making
it easier for investors to trade. Using a charting platform makes it useful for
investors to analyze market trends. Back-testing an idea from previous data
can avoid cost errors. Even if you receive market updates via your mobile
phone, it can help you trade from anywhere.

3) Treat a trade like a business: To fully master the transaction, you must
operate it like a business. You need the commitment and dedication as a
potential investor to make a potential transaction. Analyzing the risks
involved, taking successful measures to avoid risks, managing pressure and
managing losses, will improve your skills as a trader.

4) Risk only what you can afford to lose: Losing money is enough to hurt
people. You must carefully invest your funds in the right way. If the money is
expendable, then bring it to the transaction; otherwise, you should keep it
until the time is right.

5. Develop methods based on real events: Behind the development of

trading plans, there must be influence the market, not emotions or hopes.
You must set realistic expectations that can be met. Traders who have been
in the market for a long time learn every bit of information available in the
market.

6) Always use stop loss: A trader should always know how much
investment risk he can bear. The stop loss can be an amount or a
percentage, but it limits the trader's risk exposure during the transaction. It
can remove some pressure because we already know that a certain amount
of losses may occur in a given transaction.

7. Know when to enter and exit the market: The stock market is highly
volatile in nature and can change at any time. As a trader, you must learn
when to enter the market and when to exit the market. There are two
reasons for stopping trading: first, invalid trading plans and invalid traders.
This may be due to inattention, bad habits ignoring market trends, and
external pressure. If the trader is at the peak of loss, then the trader should
take a break and resume business after a while. Once the trader has
accepted the profit and loss in the right way, he will persevere.

8) Research the market: To learn every part of trading, you need to study
the market thoroughly. It is important to understand the market, its
complexity and life cycle process. Focus and observation enable traders to
improve their skills and intuition.

9. Maintain a trading perspective: stay optimistic when trading. Loss is

part of trading. Winning a trade is another step towards profitable business.
The accumulated prize money became a victory. Your business must obtain
a reasonable return within a reasonable time.

10. Protect your capital: Protecting capital includes avoiding unnecessary

risks and doing everything possible to protect your initial capital investment.