One of the best ways to make money in the market is to follow a strategy. There are some golden rules for trading that are timeless and cannot be ignored. One such rule is to never trade against the trend. It is easy to be tempted to go against the trend after missing a big move, but this is not a good idea. Instead, trade only when you have a clear idea of the direction that the market is going.
Another rule is to not let emotions control your decisions. Traders who let their emotions control their decisions are most likely to lose money. Instead, try to stay calm and follow a system to make money. You can use stop losses to protect your profits, but try to avoid watching a losing trade go downhill. It is also helpful to keep a record of your winning and losing trades. This way, you can prevent yourself from making any mistakes in the future.
Another golden rule for trading is to never risk more money than you can afford to lose. This rule means that you should keep enough money in your account to make it through tough times. You should also scale up when you see profits and scale down when you aren’t. You should also never trade just for the fun of it. It is possible to make a lot of money in the stock market without achieving your goal, but if you do it too often, you will end up losing your capital.
