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  • Golden Trading Rules

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    Lalit Chaudhary
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    This document provides guidance for becoming a successful trader. It emphasizes the importance of learning, developing a strategic approach, and managing risk. Key points include: 1) Traders should always learn and avoid taking tips, as tips lack a strategic approach and can lead to big losses. 2) It is important to set predefined stop losses to limit losses and make decisions objectively. Stop losses should have a buffer below the low of a candle. 3) Money management is crucial, such as starting with small position sizes and strict risk management. Overtrading and panic trading should be avoided. 4) Maintaining the right mindset is important. Traders should focus on learning and adapting to

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    This document provides guidance for becoming a successful trader. It emphasizes the importance of learning, developing a strategic approach, and managing risk. Key points include: 1) Traders should always learn and avoid taking tips, as tips lack a strategic approach and can lead to big losses. 2) It is important to set predefined stop losses to limit losses and make decisions objectively. Stop losses should have a buffer below the low of a candle. 3) Money management is crucial, such as starting with small position sizes and strict risk management. Overtrading and panic trading should be avoided. 4) Maintaining the right mindset is important. Traders should focus on learning and adapting to

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Download as pdf or txt
    118 views21 pages

    Golden Trading Rules

    Uploaded by

    Lalit Chaudhary
    This document provides guidance for becoming a successful trader. It emphasizes the importance of learning, developing a strategic approach, and managing risk. Key points include: 1) Traders should always learn and avoid taking tips, as tips lack a strategic approach and can lead to big losses. 2) It is important to set predefined stop losses to limit losses and make decisions objectively. Stop losses should have a buffer below the low of a candle. 3) Money management is crucial, such as starting with small position sizes and strict risk management. Overtrading and panic trading should be avoided. 4) Maintaining the right mindset is important. Traders should focus on learning and adapting to

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    of 21

    10

    BY DEEPAK KUMAR

    A PERFECT TRADER GUIDE


    Anyone who stops

    learning is old,

    whether at twenty or

    eighty.

    Anyone who keeps

    learning stays young


    It is very well said that if we do

    not learn we will never earn or

    we can code this as Learning

    is Directly proportional to

    earning.

    If you get proper learning on

    trading you will always say

    "No to Tips"

    Trading is never done on


    tips by social media handles
    because their your
    strategical approach is zero
    and as you enter market you
    feel to exit it as soon as
    possible.
    Somebody giving you a
    predefined stop loss and a
    target and which is not by
    your learnings so the
    chances are maximum that
    you will surely end with a
    big loss.

    So my dear friend we
    have to always say
    No to tips and always
    make and strategy to
    enter and exit a trade.
    Stop-loss order is an order

    placed to buy or sell a

    specific stock once the stock

    reaches a certain price.

    A stop-loss is designed to limit

    a trader’s loss on a security

    position.

    An additional benefit of a

    stop-loss order is that it

    allows decision-making to be

    free from any emotional

    influences.
    So where to place a stop

    loss?

    Stop Loss should always

    place with a buffer to the

    low of the candle.

    Buy above the high

    Stoploss below the


    low with a buffer.

    Before taking a trade

    your stop loss always

    should be predefined.
    Money management is a

    strategy for increasing or

    decreasing the position size

    to limit risk while achieving

    the greatest growth

    possible from a trading

    account.

    It allows you to leverage

    the account while

    balancing risk.
    It is seen that beginners in

    market seeing big profits on

    trading start increasing their

    margins and hit their stop

    loss.

    Then they start panic trading

    and always blow their

    account.

    We should always plan a

    trade with proper risk

    management suppose you

    have a trading amount of

    ₹20000 so we should work


    always with 1-2 lots for at

    least 1 month to test our

    strategy.
    We should always enter
    with that much quantity in
    market if suppose the trade
    dose not go in our direction
    and we hit our stop loss so
    we should get a proper
    sleep.

    FOLLOW 1% STOP LOSS


    Entry @500

    Stop Loss @480

    Stop loss in rupees = 20

    A/C size (Total Capital)

    suppose it is 10,00,000

    1% Risk Per trade i.e

    10,000/-

    So 10,000/20 = 500

    Buy 500 Quantity


    Create Personal Rules

    Trade the Right Market


    Conditions

    Establish a Trading Plan


    and Trading Journal

    Establish a Trading Plan and


    Trading Journal

    Relax! If you're relaxed and


    enjoy your trading, you will
    be better equipped to
    respond rationally in all
    market conditions.
    Overtrading refers to the

    excessive buying and

    selling of stocks by either a

    broker or an individual

    trader.
    You should always follow

    a risk to reward ratio in

    your trading strategy.

    In many cases, market strategists


    find the ideal risk/reward ratio
    for their investments to be
    approximately 1:3, or three units
    of expected return for every one
    unit of additional risk. Investors
    can manage risk/reward more
    directly through the use of stop-
    loss orders and derivatives such
    as put options.
    Think of it as continuing
    education.

    Traders need to remain


    focused on learning more each
    day.

    It is important to remember
    that understanding the
    markets, and all of their
    intricacies, is an ongoing,
    lifelong process.

    Hard research allows traders to


    understand the facts, like what
    the different economic reports
    mean.
    Focus and observation allow
    traders to sharpen their
    instincts and learn the
    nuances.

    World politics, news events,


    economic trends—even the
    weather—all have an impact
    on the markets.

    The market environment is


    dynamic.

    The more traders


    understand the past and
    current markets, the better
    prepared they are to face
    the future.
    BASIC TO
    PRO
    TRADER ₹3000
    COURSE
    COURSE CONTENT:
    WHAT IS STOCK MARKET.
    PRICE ACTION TRADING BASIC TO
    ADVANCE.
    SUPPORT RESISTANCE ADVANCE
    CHART READING.
    TECHNICAL ANALYSIS.
    OPTION TRADING BUYER PACK.
    OPTION TRADING SELLER PACK.
    OPTION STRATEGY.
    SWING TRADING
    COMMODITY AND CURRENCY.
    TRADING PSYCHOLOGY
    TRADER MINDSET
    You want to learn Stock Market Trading?
    Fee are high?

    Don't worry.. join our premium Course only


    in
    3000 Rs and get 2 Days Webinar Worth of
    499 free.
    lifetime support free.
    free entry in paid telegram for lifetime.
    BASIC TO
    PRO
    TRADER
    COURSE

    ₹3000

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