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1.Do not overtrade
- Trade within your means
- Use 1/3 of your total margin only
2.Always use protective stops to limit losses
- Go in with a plan
- Don't trade impulsively
- Have predetermined risk as well as profit
- Don't move stops higher or lower and say "It'll come back."
3.Diversify your portfolio
- Try to avoid "Loading up" in any one commodity or product
4.Keep emotions in tact
- Don't make trading decisions based on "Fear and Greed", as hard as this may be
- Make decisions away from the market - "Don't be a screen watcher"
- Don't let ego get in the way
5.Trade in the direction of the immediate trend
- Don't try to pick bottoms or tops
6.Don't add to losing positions - get out!
- Don't Average "Down" or "Up"
7.Keep it simple, more complicated is not always better
- Trade within your understanding of the markets
8.Employ approximately a 3:1 reward to risk ratio
- Don't ever risk $2 to make $1
9.Always be a student and keep learning
10.Above all, be disciplined
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A few more excellent articles here...
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