There are some simple guidelines that if followed, will immensely help to increase the likelihood of success and survival in the market. The following guidelines must be understood and taken seriously by all new profile traders:
1. Trading is not gambling or a game of chance. It is a skill and a discipline that can be learned.
2. Consistently profitable trading cannot be accomplished without a coherent understanding of the market and how it works.
3. Learning to trade requires developing both mental and psychological skills.
4. Always use Trading plan.
5. Never trade with money you cannot afford to lose.
6. Never trade without Stop Loss.
7. Risk management is an essential component of any trading strategy.
8. Treat trading as Business & maintain Trading Journal.
9. Never trade in a market that you do not understand.
10. Never enter a live market until you are prepared.
11. Start small and grow.
12. Protect your Trading capital.
If you are not making money, review the above guidelines and identify which ones you have violated.
Trading is a serious business. It is important to be committed to the process of learning and to pursue it in an intelligent manner. As with any endeavor in life, trading can be a most pleasant and rewarding experience, or it can be a difficult and arduous journey.