HOW TO BECOME A
SUCCESSFUL TRADER
CA JITENDRA KHANDOL
Golden Rules of TRADING
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GOLDEN RULE # 1
When you are trading
for the first time, take
only 10% risk of the
total amount available
for the trading.
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GOLDEN RULE # 2
Maintain Risk-Reward
Ratio
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Keep a Strict Stop Loss
GOLDEN RULE # 3
Risk Hai, To Ishq Hai…
Stop Loss Hai, To Trading Hai…
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ADD IN FAVOR
SUBTRACT IN UN-FAVOR :
GOLDEN RULE # 4
Build a Pyramid for
favorable positions only
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GOLDEN RULE # 5
Make entry on anybody’s call
but exit at your own. He who
becomes the master in
“When to Exit”, can surely
become a successful trader.
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GOLDEN RULE # 6
It is not necessary to
trade every day,
sometimes
‘No Trade’ is the best
trade.
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Trade in quantity when there is a clear
cut trend with low volatility. At least
once in a week or month you get clear
trend. Trade with high volumes on this
day, because TREND is your best
friend.
GOLDEN RULE # 7
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GOLDEN RULE # 8
Do not take big
positions before a big
event
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Do not try to time the
GOLDEN RULE # 9
market, it has its own way
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Do not change your views
GOLDEN RULE # 10 only because of news &
rumors in the market
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GOLDEN RULE # 11
Do not depend on anyone.
Try to take your own
decisions.
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GOLDEN RULE # 12
Learn from your mistake,
make sure that you don’t
repeat it next time
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GOLDEN RULE # 13
Never get attached to
stocks with positive or
negative bias in your
mind. Trade with Neutral
Bias.
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Follow the price and not
the stocks.
GOLDEN RULE # 14 PRICE is GOD
ભાવ એ જ ભગવાન
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Trade the stocks just like
GOLDEN RULE # 15 an affair with them; don’t
marry them.
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GOLDEN RULE # 16
Chart is the
consequence of price
action, so concentrate
always on price action
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Don’t trade in high beta
stocks during volatility,
GOLDEN RULE # 17 chances of you getting
stuck is very high unless
you are a fast mover
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Always trade through
GOLDEN RULE # 18
options before a big event
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Future/Option trading with Open interest in view
involves:
a. Long built up
(Rise in Price alongwith Rise in OI)
b. Short built up
GOLDEN RULE # 19 (Fall in Price alongwith Rise in OI)
c. Long Unwinding
(Fall in Price alongwith Fall in OI)
d. Short Covering
(Rise in Price alongwith Fall in OI)
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Don’t sell options unless
GOLDEN RULE # 20
you are master mind trader
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GOLDEN RULE # 21
Market is like a test …get only few chances
match. You have to field of catch during the day.
for the whole day but… Take That..!
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Try to convert every
GOLDEN RULE # 22
opportunity in your favor
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Buy on Rumor,
GOLDEN RULE # 23
Sell on News
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Do not panic in unfavorable situation.
GOLDEN RULE # 24
Fresh mind is utmost necessary to trade
in the market.
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Take MORE RISK
When you are in Profit &
GOLDEN RULE # 25
LESS RISK
When you are in Loss
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GOLDEN RULE # 26
Do not follow purely bulls or purely
bears.
Bulls never say that market will be
going down & Bears never say that
market will be going up.
E.g. Harshad Mehta Scam series
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Whenever there is a sudden large
upward or downward movement,
don’t waste your time in finding out
GOLDEN RULE # 27 the reason. Because reason is not
important. It’s Your loss which is
important, try to protect your capital
and minimize the loss.
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GOLDEN RULE # 28
Be positive in life, build
your self confidence and
try to learn from every
situation
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■ It has taken me 7 years to learn how to be successful in trading and how to become a
successful trader. It’s not only the smartness, intellect which makes you successful
trader. It is the discipline which is utmost important to become a successful trader.
■ If you follow these rules and trade with strict discipline, you will never lose money
in speculation.
■ Whenever you are in sizable profit, do positive things which inspire you in life.
Always try to inspire losers in life because they need your help. A few positive words
from you can make them feel good, give them support and motivate them to work
hard.
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Do not try to become a millionaire in a short span of time, it’s a gradual process.
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- CA JITENDRA KHANDOL
