Stock Trading Rules

I have been trading stocks for the past couple of years and have gone through lot of experiences during this period. Being a newbie I did lot of mistakes in the beginning days of trading. However I guess I have learned a lot from these mistakes. I have set own rules for myself and trying :) to follow these rules always. Below are some rules that I set and hope will help other investors who are new to this risky game...

1. DO NOT TRADE IN THE FIRST OR LAST HOUR OF THE DAY


2. SELL IF YOU GET ATLEAST SOME PROFIT. DON’T BE GREEDY.


3. ALWAYS PUT YOUR STOP LOSSES.


4. LOOK FOR THE TREND IN AFTER HOURS.


5. DON’T LISTEN TO ANALYSTS.


6. DIVERSIFY YOUR PORTFOLIO


7. AVOID BUYING ON MARGIN


8. DO NOT BUY STOCKS WITH THE MONEY YOU NEED. ALWAYS USE EXTRA MONEY THAT YOU CAN AFFORD TO LOSE.


9. ALWAYS BE READY TO ACCEPT BOTH LOSSES AND GAINS.


10. DON’T LISTEN TO WHAT PEOPLE SAY ON FORUMS. DO YOUR OWN RESEARCH ABOUT THE COMPANY.


11. A STOCK THAT HAS GONE UP QUICKLY WILL ALSO GO DOWN QUICKLY. SO TAKE YOUR PROFITS.

12. Never buy penny stocks


13. Never buy stocks based on the suggestions that you get through some emails.


14. Never fall in love with a stock. Always take profits.