My Rule for Stock Trading
I hurt myself from stock trading a lot and think that it is a proper time to set up a rule to ensure that I will not make the same mistake again… if possible.
- Set a cut-loss point and strict to it. Let’s make it at 3%.
- If the credit is being used, do not buy a big volumn. Instead go on for the smallest portion such as 30k – 40k baht.
- Do not buy a big volumn, unless you are very sure about it.
- If you buy, then the price drop, do not chase for it. Let’s it go. Cut loss if it reached the point.
- Set the point of sell. Sell it when the price reach.
- Do not put money on one or two symbols. Buy multiple items.
- Make small money often is better than make a big money once (the latter one has higher .. a lot higher risk).
- Do not use credit account. Use cash account!
- For a small-price stock that is rapidly rising, the price will hit the peak, then go down. At a time it goes down, do not buy it, unless it re-rise again and step over the old peak.
- If you buy the stock against the 9. rule and the price continue to go down, do not buy more. Don’t think about buying for getting a lower average price, until you have the idea that it reaches the minimum point of the day.