Everyone wants the same thing from the stock market:
✅ steady profits
✅ fewer sleepless nights
✅ the chance to finally escape the cycle of “one good year, one bad year.”
But here’s the blunt truth: most traders don’t lose money because the market is “rigged.” They lose because they don’t have rules.
If you want to live a fulfilling life in the market—where you steadily compound year after year instead of constantly clawing back losses—then you need discipline more than prediction.
After surviving three full cycles of bull and bear markets, here are the 11 stock trading rules I swear by. Ignore them at your own risk.
1. Respect the Market’s Rhythm
The market is cyclical: it rises, it falls, then it rises again. Panicking is pointless. Optimism is survival fuel. A peaceful, long-term mindset keeps you from selling bottoms and chasing tops.
2. Only Swim With the Current
Trend is everything.
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Price above the 5-day moving average = short-term uptrend.
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Price above the 30-day moving average = medium-term uptrend.
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Price above the annual moving average = long-term uptrend.
Never buy into a downtrend. The current is stronger than you.
3. Follow the Volume, Not the Noise
Low-volume stocks = low conviction.
Volume tells you where smart money is flowing. If no one’s trading it, ask yourself why you should.
4. Patience Is the Trader’s Superpower
The market rewards waiting. Good setups are like ripe fruit—you don’t tug on green apples.
5. Forget Your Entry Price
The market doesn’t care what you paid. Only amateurs anchor themselves to their buy price. Professionals follow the trend, not their ego.
6. Stop Dreaming of “Perfect” Entries and Exits
The lowest lows and highest highs? They look sexy on charts but destroy real traders.
👉 Aim to buy the “next low” and sell the “next high.” The middle chunk of the move is where steady money lives.
7. Never Bet the Farm
Rule of survival: never put more than 50% of your capital into a single stock.
One bad trade shouldn’t wipe out your future.
8. Don’t Buy What You Don’t Understand
At a minimum, know five things before buying:
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Industry status
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Market position
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Revenue and profit growth (3 years)
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Cash flow health
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Net assets
If you can’t explain it simply, don’t touch it.
9. Stick to Leaders and Growth
Market leaders and growth industries are where long-term wealth compounds. Mediocre companies won’t sink you, but they’ll waste years of opportunity cost.
10. Stop Obsessing Over the Index
Unless the market is in a clear downtrend, individual opportunities always exist. Focus less on the big picture, more on the right stock.
11. Break Up With Frequent Trading
Every click feels productive, but it’s just financial self-sabotage. Frequent trading is a slow bleed—like smoking for your portfolio. The big money is in holding quality stocks, not flipping them daily.
⚖️ The Marathon Mindset
The stock market isn’t a sprint. It’s a decades-long game.
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Stars make 3x in one year and disappear just as fast.
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Veterans make 20–50% a year, year after year, and end up controlling wealth beyond imagination thanks to compounding.
If you follow these 11 rules with humility and consistency, you stop being a gambler and start becoming a professional.
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