Do's
Tip
Use a position size that is equal to or less than 2% of your capital.
Tip
Establish a well-defined trader profile.
Tip
Stay informed about news events that might induce volatility in a security.
Tip
Diversify your portfolio, with a recommended minimum of 3 securities.
Tip
Implement a robust money management strategy.
Tip
Adjust your indicator settings when trading trends to avoid capturing retracements; higher settings often prove effective.
Don'ts
Danger
Exceed your loss aversion by maintaining a losing position.
Danger
Employ aggressive position sizing strategies like martingales.
Danger
Engage in impulsive trades based on uninformed guesses.
Danger
Steer clear of trading on lower timeframes, where significant frictional costs may arise.