Nakedize posted: Some of the golden rules of trading that I follow-
1) Do not risk more than you can afford to lose 2) Do not risk more than 5% per trade 3) Learn to minimise risk 4) Always have a trading plan and follow it 5) Learn to control emotions 6) Never stop learning and always backtest your strategies.
Really good points. But I believe a trader should not risk more than 2% per trade. For every trader, protecting their capital should be the first priority, even more important than earning profits.
The only golden rule I follow is to take a break when trading starts giving me stress that I can’t control. Not every market situation is worth taking a chance with and that’s why I like to stay away from it whenever I can.
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