GANN'S 21 GOLDEN TRADING RULES

Most of us invest in the stock market nowadays.Here are a few rules for trading or investing

1. Never risk more than 2% of your Trading Capital in a single trade.

2. Always use Stop loss.

3. Never cancel a Stop Loss after you have placed the trade.

4. Never Over trade.

5. Have a risk to reward ratio of minimum 1:3.

6. Never let a profit run into loss.

7. Use protective stops.

8. Never average a loss.

9. Do pyramiding. Pyramiding should be accomplished once the stock has crossed resistance level and broken zones of distribution.

( Pyramiding means adding to profit making position, reverse of averaging)

10. Pyramid issues that have strong trend.

11. When in doubt get out and don't get in when in doubt.

12. Trade active markets.

13. Distribute your risk among different markets.

14. Don't close trade without good reasons.

15. Avoid taking small profits and large losses.

16. Never get out of a market because you have a lost patience or get in because

you are anxious from waiting.

17. Be willing to make money from both sides of markets.

18. Never buy or sell just because the price is low or high.

19. Avoid trading after long periods of success or failure.

20. Don't try to guess tops or bottoms.

21. Don't follow a blind man's advice.