What are some common sense rules for trading?
A. ‘Common Sense’ Rules for Traders Divide your capital into 10 equal parts, and never risk more than 1/10 ofyour capital on any one trade. Use stop-loss orders and always protect a trade when you use a stop-loss order by using reasonable price limits. Never over-trade and adhere to your risk management rules. Never turn a profit into a loss. If you are using a stop-loss order, then raise your stop-loss so as to lock in a profit. Remember, “the trend is your friend,” and never buy and sell if you are not sure of the trend according to the fundamentals and technicals .When in doubt, get out. Only trade when you feel confident about your trading strategies. Trade in the most active markets, and refrain from the slow, inactivemarkets. Also, trade the most liquid contract months.Your risk should be equally distributed. Trade in 2 or 3 different commodity products so as to avoid tying up all your capital in any one commodity. Trade “at the market” whenever possible and try to avoid using or
