3 Golden rules of Trading
Three Simple Rules To Avoid Being Burned By The Market
Trade What You Can Lose
By the far the most important. Trading is not for the faint of heart. And it is defnitely not for people who want to gamble rent money on a penny stock. Only invest with what you are willing to lose, and you will never lose it all.
If you make a 30% profit, you sell. If it dips you can re-buy. Otherwise never look back at what could have been if you waited. Waiting after a 30% return will burn you more often than not. Remember the main goal. Take your profits.
The 3 E’s
Enter – Get in at the bottom
Exit – Set your shares to sell at 30% profit
Escape – Set a stop price. Even if it’s at 50% loss. Sometimes catastrophic events will happen overnight to a stock.