These trading rules can be applied by everyone.

As everyone knows rules are more important in trading than any other things. I have been writing these rules on my personal trading journal for the past 3 years. Following these rules might help you to make money during bull market, and alert you to stay in cash during bear market. As we grow more in experience, more rules will be coming and we will be refining our approach along with our rules. Some technical rules listed here might not suit your approach, because one size doesn't fit all. 

Learn to take a small loss.

Don't invest in same sector that you have already invested in.

Only trade stocks which is outperforming the Index.

Always trade in the direction of the primary trend in your chosen time frame.

Be patient, wait for the right opportunity in the market.

Stay in cash, when the general market is below 20-50 EMA.

Always keep the position size of your trades constant.

Let your winning trade run as far as it goes with ATR or EMA TSL.

Always take 2.5% risk on each trade, no matter what.

Don’t take larger position size & over-trade, after several profitable trades.

Never let your fear or greed to control your trade.

Never ever think about taking revenge from market.

Be totally flexible, be able to admit when you’re wrong.

Always learn from your mistake.

Be patient. Once a trade is going in your favor, give it time to create the profits you expected.

When sharp losses in equity are experienced, take time off. Close all trades and stop trading for several days.

Being reactive instead of predictive on actual price action.

Be patient. If a trade is missed, wait for a next signal to emerge before putting the trade on. Because the opportunities never stop.

Only look for low risk, high reward, high probability setups, when you don’t have any signals, don’t trade.

Do not worry about losing money that can be made back, worry about losing your trading discipline.

Money cannot consistently be made trading every week or every month during the year.

Have the right mindset during a string of losses and assume that it’s just temporary, because it’s the key to coming back and being successful.

Focus on limiting draw downs instead of focusing on huge returns.

At times, the market may moves very quickly through order prices, and if you place a limit orders it simply won’t get filled, during these times, don’t panic and wait for the market to stabilize before placing the orders.

Don’t widen your stop, once you are in a losing position because increasing your stop only increases your risks.

Keep studying, keep growing, and never give up.

Always keep your risk at a level that is less than that of your average gain.

Stay away from taking trades before important news announcements.

Add to a winning position, not a loser.

Always place your buy stop at opening’s high or low.

Always analyze your past trades.

Do not take the trade, if the price stay below previous day’s close.

No trader is perfect, you can’t buy the exact low and sell the exact high. Learn to be happy catching the middle part of the trend.


Close all your losing position, if the market consolidates for 2 weeks after entering.

Don’t be overly concerned about whipsaws in trading because one really good trade will pay for all of these whipsaws as long as you keep your losses small.

Don’t become euphoric after winning trades.

Trade the market, not the money.

Never buy or sell if you are not sure of the current trend.

Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.

Remember, if you are not sure what to do, don't do anything.

Always trade a clean set-up.

If there's no follow up buying after entering the trade, then close the position.

If you ever buy any stock near potential resistance and price unable to cross the level then close the position immediately.

Always think in terms of the next 1,000 trades.

Always invest 33% of your total trading capital on each trade.

Never chase stock which are 5% above their BREAKOUT levels or are up >10% in a row.

Never chase the Upper Circuit stocks because they are operators driven instead wait for other opportunities.