Understanding the rule of Investing is Important for every transaction you make. Trademints provide you the Golden rules of Investing.

  • Always trades with a stop loss, define it before you enter a trade.
  • Do not count on your money when the trade is open.
  • Always decide your profit booking method in advance, greed may come in between.
  • Do not overtrade; trading a position which is bigger than your portfolio size in excitement can be a big risk.
  • Choose to stay in market only when required, choosing a strategy that keeps you in market only 50-60% of times helps you avoid price shocks.
  • Do not trade in illiquid stocks which cannot fulfill your order when required (low volume stocks).
  • Cutting a big amount of risk with a nominal cut in profitability is a good tradeoff.
  • Trade a position which has reward: risk ratio at least 1 :1 or greater.
  • Do not over leverage your positions; with extra reward it brings extra risk.
  • Set your daily, weekly, monthly, yearly targets and so on for risk as well as reward.
  • Do not trade on a day with holiday type volumes.
  • Trading is a Business! Plan well in advance all the requirements and rules before your execute.
  • Maintain a trading journal, paper trade after a loss.