Ten Rules of Tradevesting
2 min readNov 20, 2023
- Let the profit grow and cut short the losses. Use strict entry and exit rules. Know when to exit a trade on either side whether in profit or loss.
- Always look at the charts to find the support and resistance area; where other traders are lining up to buy or sell.
- Don’t try to buy at the extreme bottom or sell at the extreme top. Always wait for the price to rebound if the price is falling. Same way, just opposite to sell the stock. Try to eat middle part of the overall trend.
- Don’t think about the market as being cheap or expensive. Keep on trading based on their set of rules. Know that market can stay cheap of expensive for a longer time. There is nothing cheap or expensive in wealthy traders’ mind. Only think if there is someone going to pay more or less for a stock just after an hour, a day, a week or a month.
- Don’t use too many indicators at a time. Always keep their trading very simple. Always look at the pure price action. Many successful traders/investors may be using different indicators but they don’t use many at a time.
- Don’t average the losing trades rather increase the position size in winning trades; and by doing this you limit your losses and grow the profit in winning trades.
- Do read a lot about market psychology to understand the reasons behind price action and impact of a news on the masses.
- Don’t hope or pray in the market. Take actions based on the based on the changes in prices. Be less concerned about being right or wrong rather you should be more concerned about making money.
- Practice reading right side of the chart and not the left. After having a look at the left side that has already happened so far, always try to figure out that what is going to happen next. Practice to form the next candle in your mind that how it is going to be; after all practice makes us perfect.
- Don’t judge your success or failure of life based on trading. Making money in the market doesn’t make you a good or bad person. It has nothing to do about overall success in life.
