Golden Rules of Trading

 Golden Rules of Trading

1. Preserve Capital First – Equity is your oxygen; never risk losing it all.

2. Cut Losses Quickly – Always use stop-loss; never let small losses grow big.

3. Let Profits Run – Don’t exit winning trades too early; allow trend to reward you.

4. Never Overtrade – Quality trades matter, not quantity.

5. Risk Only a Small % per Trade – Usually 1–2% of equity.

6. Trade with the Trend – “Trend is your friend” until it ends.

7. Avoid Emotional Trading – No greed, fear, or revenge trading.

8. Have a Trading Plan – Enter with strategy, not guesswork.

9. Keep a Trading Journal – Record trades, learn from mistakes.

10. Always Respect Risk–Reward Ratio – Don’t take trades with poor reward compared to risk.

11. Stay Disciplined & Patient – Sit out when there’s no clear setup.

12. Never Average a Losing Position – Adding more to a bad trade magnifies losses.

13. Continuous Learning – Markets evolve; keep improving strategies.

14. Protect Profits – Withdraw profits regularly; don’t gamble them back.

15. Trade What You See, Not What You Think – Follow the chart, not emotions or predictions.