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**Creator:** Humbled Trader
**Source:** 
**Type:** #litnote 
**Topics:** [[Other/Obsidian Starter Vault(Second Brain)/003 RESOURCES/Trading]]

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- Knowing the patterns, indicators and system is just a half of the story
# Always have a trading plan with entry, exits and stops
- Always take trades near the support zone and only after confirmation signal with 3:1 reward ratio.
- The best trades are often no trades
- New traders stay away from low cap penny stocks
- Mid cap and large cap are friendly for traders. Resistance and supports are easy to predict for these.
- There is no consistency in low cap stocks
- Stay flexible. Watch out for news and other events

# Analyze the news like your life depends on it
- You don't always buy the dip. Look for why the stock went down or crashed
- Check for a catalyst in any scrip you want to buy or sell

# Step away from a trading when emotions start kicking in
- Trading and emotions can't work together
- Planning before trading will keep you detached from emotions
- Avoid trading market opens
# Be Realistic about taking profits
- Before you take trade, know the upside potential of a stock
- You can't buy and expect it to go 100% in a day. Don't expect it to go to moon.
- Theres no need to panic. The price will come down
- Small profits will add up to your accounts slowly

# Always prioritize risk management
- No risk management= No growth
- You can blow up if you don't have a proper risk management
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