Basic Trading Rules

1. Day Traders Should Use Limited Exposure provided by your brokerage. This will help to limit your losses. Investors should never use the Exposure unless you are ready to pay the exposure used within 2 Days.
2. Do not take un-necessary delivery position, unless you are in a profit of more than 2%.
3. Keep strict stop-loss for all trades, don't put stop-loss orders, better monitor and manually exit the trade if stop-loss hits. Most of the time stop-loss orders get hit and market can bounce back.
4. Book profits whenever you get a chance or trailing stop-loss is must if the trade is in profit.
5. Short term traders must try to quit the market every day after making some good profits, and should closely follow the spot nifty levels provided daily.
6. Never trade what your heart says, trade only what your mind says and what is in front of you, on the screen.
7. Never trade any stock in panic or based on unwanted news or rumours.
8. Never try to trade in any stock which is trading abnormally. Most important is never try to catch a flying stock without any technical knowledge, whether it is in upside or down side.
9. Try to Book profit or Short Sell whenever the Market is in higher side and near a strong resistance zone. (e.g.: Sell any stock that was near our 3rd Target of a Buy call with stop loss of 1% above).
10. Try to Buy whenever the Market is in the lower side and near a strong support zone. (e.g.: Buy any stock that was near our 3rd Target of a Sell call with stop loss of 1% below).