Trader’s Rule of Thumb
By Scg8866t Stockinvesting  •  November 4, 2013


As I have mentioned in my previous blog post, there is an element of randomness in the stock market. Besides having an exit strategy, it would be good to follow a set of pointers to create a safety net for those who trades regularly.

1) The trading limit that you use have to be acceptable for you. Do not risk what you aren't willing to lose. Do not over leverage and always trade within your means. The saying "High risk equals high returns" should be rephrased to "High risk equals high losses or high returns"

2) Do not trade in a random matter, follow a strategy. Having a set of strategy to follow would make your trades more justifiable and in turn easier to fine tune. Be it sell on bearish signal crossovers or buy on oversold RSI. Find your most preferred strategy and stick to it. Find a ......
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By Scg8866t Stockinvesting
Thanks for reading my blog. I am just an ordinary Singaporean with an avid interest in technical analysis, fundamental analysis and philosophy.
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