(18) Allow Profit To Run & Cut Your Losses
It is one of the most important rules for investing money in stock markets. A successful trading strategy is one that allows your profit to increase with time & cut your losses as early as possible.
You should trade your stocks by putting “stop loss order” during trading hours to minimize your losses. You should decide about the amount of losses you are ready to suffer in your investment & then put stop loss order according to it.
(19) Better Information Leads To Higher Returns
It is one of the realistic rules for investing money in equities. Stock analysts, stock brokers as well as professional traders & investors are highly skilled professionals.
They are mostly equipped with much reliable & better information regarding a particular stock. They are usually found to act according to it to make huge returns.
However, small investors are found to trade mostly on the basis of their emotions & guesses towards a particular stock. This mainly results in losing money in stocks markets.
- Stock Market Rules: Shutterstock