Before you start investing or trading, based on my 3 decades of experience, I recommend you consider the following:

  • Never Bet More Than You Can Afford to Lose – Never risk your life savings or putting yourself or your family into debt as a result of your transactions. Carefully consider the amount of money you’re risking before you trade and the maximum loss you’re willing to bear. If you reach your maximum loss, walk away.
  • Be Religious About Stops – establish your profit target and your stop loss before you trade, then cut your losses if you hit your stop loss level. Do not let emotion get involved, cut your losses when stops are reached.
  • Use “Trailing Stops” when you’re in a profit situation. Don’t take profits too early. When a profit target is reached, consider raising it to another level and raise your stop to breakeven.
  • Follow Momentum and “The Trend is Your Friend” until stopped out.
  • Maintain a “core position” in line with your medium or long term view and trade around that.
  • Be Patient – Less Trades is Better.
  • Limit Leverage.
  • Be Willing to Change Your Mind, Admit Your Wrong.
  • If up 100%, take 50% off, then run the rest, a risk-free trade.