Adopt a definite trading plan.

You must have a predetermined set of rules you use to trade. Often your emotions will tell you to do something completely different, and it is only by adhering to your formula that you can resist temptations and emotional stresses.

If you’re not sure, don’t trade.

If you feel unsure of yourself, take your loss or protect your profit with a stop order. If you’re unsure of a position, you will be influenced by a multitude of extraneous details and will probably end up taking a loss.

If you cannot afford to lose, you cannot afford to win.

Losing is a natural part of trading, and if you are not in a position to accept losses, either psychologically or financially, you have no business trading. Trading should be done only with surplus funds that are not vital to daily expenses.