These rules emphasize both risk management and mindset, which are critical for success in trading.
1. Buy when prices are low:
Take advantage of opportunities when prices are at their lowest to maximize your chances of future profits.
2. Never sell at a loss:
Avoid selling an asset for less than the price you purchased it for, unless it’s absolutely necessary or part of a strategic decision (e.g., cutting losses in a prolonged downturn).
3. Avoid excessive fear or greed:
Fear: Don’t let fear stop you from seizing investment opportunities.
Greed: Don’t be overly greedy by aiming for unrealistic gains, as it can lead to significant losses.
