THE CORE RULEAlways secure profits.
Always protect capital.
There is no perfect trade. Your job is to make a decision with a reason, manage the risk, and stay disciplined when the market moves fast.
- Have a plan before entering. Know why you are taking the trade, where the idea is wrong, and where you may take profit.
- Never chase blindly. Wait for a setup and measure the potential reward against the risk.
- Do not ask how high a stock can go or let someone else’s price target replace your own plan.
- Do your own due diligence. Confirm information at the source instead of relying on blogs, forums, or chat-room opinions.
- Never go all in. Spread your buying power so one trade cannot control your account.
- Do not average down unless it was part of the original strategy. Hope is not a strategy.
- Position size matters. If your heart is racing, the position may be too large for your present risk tolerance.
- Admit when the trade is wrong. Do not force a losing idea just to prove yourself right.
- Emotions are natural, but the chart and your plan—not fear or excitement—should guide the decision.
- Do not trade because you are bored. You do not have to trade every day.
- Do not fall in love with a stock. It does not care about you or your goals.
- After a strong win, consider stepping away instead of jumping back in and giving the gain back.
- Small, consistent wins matter more than swinging for one home run. Discipline includes taking profits when your plan calls for it.
- Avoid overtrading. More trades do not automatically create better results.
- Midday can bring lower volume and less follow-through. Be selective and wait for quality setups.
- If you want longevity, trade like you are building a skill—not trying to retire next week.
QUICK REMINDERSWAIT FOR THE SETUP.
NEVER CHASE.
DO NOT GO
ALL IN.
YOU DO NOT HAVE TO
TRADE EVERY DAY.
TAKE THE PROFIT.
MOVE ON.
A note on tools and low-priced stocksLearn the charting, order-entry, and research tools offered by your broker before risking capital. Be especially cautious with very low-priced stocks: volatility, liquidity, spreads, dilution, and sudden news can magnify risk. More shares do not mean a better investment.