50 Time Tested Classic Stock Trading Rules

  1. Plan your trades. Trade your plan.

  2. Keep records of your trading results.

  3. Keep a positive attitude, no matter how much you lose.

  4. Don’t take the market home.

  5. Continually set higher trading goals.

  6. Successful traders buy into bad news and sell into good news.

  7. Successful traders are not afraid to buy high and sell low.

  8. Successful traders have a well-scheduled planned time for studying the markets.

  9. Successful traders isolate themselves from the opinions of others.

  10. Continually strive for patience, perseverance, determination, and rational action.

  1. Limit your losses – use stops!
  1. Never cancel a stop loss order after you have placed it!

  2. Place the stop at the time you make your trade.

  3. Never get into the market because you are anxious because of waiting.

  4. Avoid getting in or out of the market too often.

  5. Losses make the trader studious – not profits. Take advantage of every loss to improve your knowledge of market action.

  6. The most difficult task in speculation is not prediction but self-control. Successful trading is difficult and frustrating. You are the most important element in the equation for success.

  7. Always discipline yourself by following a pre-determined set of rules.

  1. Remember that a bear market will give back in one month what a bull market has taken three months to build.
  1. Don’t ever allow a big winning trade to turn into a loser. Stop yourself out if the market moves against you 20% from your peak profit point.

  2. You must have a program, you must know your program, and you must follow your program.

  3. Expect and accept losses gracefully. Those who brood over losses always miss the next opportunity, which more than likely will be profitable.

  4. Split your profits right down the middle and never risk more than 50% of them again in the market.

  5. The key to successful trading is knowing yourself and your stress point.

  1. The difference between winners and losers isn’t so much native ability as it is discipline exercised in avoiding mistakes.
  1. In trading as in fencing there are the quick and the dead.

  2. Speech may be silver but silence is golden. Traders with the golden touch do not talk about their success.

  3. Dream big dreams and think tall. Very few people set goals too high. A man becomes what he thinks about all day long.

  4. Accept failure as a step towards victory.

  5. Have you taken a loss? Forget it quickly. Have you taken a profit? Forget it even quicker! Don’t let ego and greed inhibit clear thinking and hard work.

  6. One cannot do anything about yesterday. When one door closes, another door opens. The greater opportunity always lies through the open door.

  7. The deepest secret for the trader is to subordinate his will to the will of the market. The market is truth as it reflects all forces that bear upon it. As long as he recognizes this he is safe. When he ignores this, he is lost and doomed.

  8. It’s much easier to put on a trade than to take it off.

  1. If a market doesn’t do what you think it should do, get out.
  1. Beware of large positions that can control your emotions. Don’t be overly aggressive with the market. Treat it gently by allowing your equity to grow steadily rather than in bursts.

  2. Never add to a losing position.

  3. Beware of trying to pick tops or bottoms.

  4. You must believe in yourself and your judgement if you expect to make a living at this game.

  5. In a narrow market there is no sense in trying to anticipate what the next big movement is going to be – up or down.

  1. A loss never bothers me after I take it. I forget it overnight. But being wrong and not taking the loss – that is what does the damage to the pocket book and to the soul.
  1. Never volunteer advice and never brag of your winnings.

  2. Of all speculative blunders, there are few greater than selling what shows a profit and keeping what shows a loss.

  3. Standing aside is a position.

  4. It is better to be more interested in the market’s reaction to new information than in the piece of news itself.

  5. If you don’t know who you are, the markets are an expensive place to find out.

  6. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word – Nobody! Thus the successful trader does not base moves on what supposedly will happen but reacts instead to what does happen.

  7. Except in unusual circumstances, get in the habit of taking your profit too soon. Don’t torment yourself if a trade continues winning without you. Chances are it won’t continue long. If it does, console yourself by thinking of all the times when liquidating early reserved gains that you would have otherwise lost.

  8. When the ship starts to sink, don’t pray – jump!

  1. Lose your opinion – not your money.
  1. Assimilate into your very bones a set of trading rules that works for you.

Have a great week ahead!..
Good luck…SureshG


Great info… must follow…

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Although every point is a gem. At this moment i feel two points stand out according to me. Point no 45 & 50.

Point 45: We must know who we are, why we react in a specific way at a specific moment, & then Sync our strategy with what we are. I read some where else that most traders loss because they start trading when they are not ready. Knowing oneself is most important part of being ready.

Point 50: Habits. Good trading habits. Neuroscience tell us to form any habit we need two things 1) routine & 2)reward. Say iF anyone want to form a habit of sticking to stoploss, our mind first be trained with a routine of exiting at SL and reward. Reward could be the potential loss avoided. (keeping a trading journal and see what happened after stoping out)


Awesome collated rules! Thanks a ton for sharing. :pray:

I think this :point_down: one is not for a retail trader who wants to become a successful trader but for the ones who are already successful enough to withstand the outcome. All retail traders think you can become successful by doing this and end up blowing it than become rich :smiley:

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Thanks @Vishnu_Shankar

@TraderVenk…Thanks Venkat again for you insights…at the end of day, Discipline of having good habits while trading keeps you in the game… I often referto these rules as in the heat and frenzy of trading, old habits keep creeping in… We need to not only review trading often we need to review oneself if you want to be successful trader…

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@saiography…Yes Sree, Could 't agree with you more… Actually all the rules does’t apply to everyone…At different stages of trading lifespan some matters more than others and some become relevant or irrelevant than others. My idea of these rules as I said to Venkat earlier is to help us review our trading style often and see if there is anything we are doing to sabotage our trades unconsciously… Usually this is my Pinup poster next to trading computer! :grinning:

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Please always give the reference url from where the material is copied so as to give credit to the original authors.

@SureshG Thanks for All 50 of them… all must…

It will ge a great idea to recite them every morning before starting to trade or even otherwise as many apply for even our day to day life activities… just as a reminder to not commit any of them… though many might know them all but to practise them everytime we encounter the scenario is seldom followed…

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@maddy_Des …this is street wisdom …there is no author for these rules…lot of people have published this but they don’t own these rules too…


Do you even know who you are talking too :angry:

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@Mitesh_Thakkar … thanks… Actually from outside …these rules may look tedious but once you become a successful trader you will actually see that you are on the right side of these rules…Good to go thru them often :+1:

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@maddy_Des.Get a Life

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@SureshG… always a pleasure to read

Indeed , Where can I get it. pirated torrent version will also do. :stuck_out_tongue:

Yes of course! Why ask?

Let us now do a bit of research.

Remember this great write up? :point_up_2::point_up_2::point_up_2:
The whole gaddammit post was lifted from the well known book!!
No reference to the original author, or the book. Written as if the whole ambrosia of knowledge just sipped from his brilliant mind.
Most of the time, such people will go on to make very flimsy excuses like “I never claimed to have written that!!” at until they are caught.
But this is a a crime among intelligentsia - called palgarism.

All hell to fakers and their blind shakers!!

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Indeed, I have nothing against you.
Once in a while you have also shared the credit info like in thispost.

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@maddy_Des…Original or pirated…the whole point is sharing and you are still stuck in your negativity…Kudos,…oops sorry 'I copied this para from somewhere else,don’t remember url

@harry Please delineate the negativity in the above statement sir!

You were typing something and then suddenly stopped!!
Eagerly waiting for your scathing remarks for my mannerism or just pointing out the negativity/lifelessness in my opening statement!

So its clearly evident that you don’t know him. But let me ask you what difference does it makes if he is copying or posting original content? As long as some people learn something from these articles/posts, they are fulfilling its purpose. Instead of asking for the original author/writer you can either let this pass away or discuss about it which will in turn help you in trading if you are an active trader.

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