There are rules on the stock market which you have to stick to otherwise you are likely to suffer losses. It is not a secret that certain rules are set up in order to regulate the trade and give equal opportunity to all investors. What is more, rules are usually designed in such a way that they are favorable for the traders. That is why it is better to know the rules and stick to them. If you do not like to obey the rules you are likely to lose. It is in your interest to take control over your business as only you are in charge of your life and success. That is why if you have decided to trade on the stock market you should get to know the rules.
One of the first things you should know is to keep in mind the main rules and never forget about them no matter where you are and what you are doing. You should understand that it is for your success to stick to the rules. If you do not know them you should get acquainted with them and remember them.
Rule 1: always stick to the rules. In case you don’t want to obey the rules you are likely to be regarded as unreliable investor and there even can be taken precautionary measures which may prevent you from further trading on the stock market. What is more, there is even legal responsibility for breaking some of the rules which are laws. If you stick to the rules you may be sure that you are halfway to your success. There is nothing that can prevent you from getting profit since you are not in the way of other traders and companies.
Rule 2: When you trade you should always check that the sum of money you put under risk was not more than 3 per cent of the portfolio. In such a way you increase your chances for the victory because even if you lose something there is always money left to try once again in some other. If you do not stick to this rule you are likely to be carried away by emotions and lose everything you have within several hours.
Rule 3: You should limit your losses to 5-15 per cent. It is very important, however extremely difficult. There are many people who think that they can cope with it but in fact for the majority it is too difficult to save money as they are trying to get them back, however in vain.
With the help of these simple rules you are likely to increase your chances for the success as much as possible. What is more, in such a way you can develop your skills and get much profit.
Lots of people who are taking care of their retirement investing or any other type of investments use stock market to diversify their sources of income.
We highly recommend to visit this site with stock market news, and without the latest stock market news your trading activity on the stock market can be in real danger.