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.

  1. Set a cut-loss point and strict to it. Let’s make it at 3%.
  2. If the credit is being used, do not buy a big volumn. Instead go on for the smallest portion such as 30k – 40k baht.
  3. Do not buy a big volumn, unless you are very sure about it.
  4. If you buy, then the price drop, do not chase for it. Let’s it go. Cut loss if it reached the point.
  5. Set the point of sell. Sell it when the price reach.
  6. Do not put money on one or two symbols. Buy multiple items.
  7. Make small money often is better than make a big money once (the latter one has higher .. a lot higher risk).
  8. Do not use credit account. Use cash account!
  9. 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.
  10. 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.

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