What are the few basic rules of trading?

<p id="isPasted"><strong>Rule 1: Always Use a Trading Plan</strong></p><p>A trading plan is a set of rules that specifies a trader's entry, exit, and money management criteria for every purchase. Use technology to test a trading idea before risking real money. This process is known as backtesting. It allows you to apply your trading idea using historical data and determine if it's viable. The plan can be used in real trading after it's been developed and backtesting has shown good results.</p><p id="isPasted"><strong>Rule 2: Treat Trading Like a Business</strong></p><p>You must approach trading as a full or part-time business, not as a hobby or a job, if you're going to be successful. There's no real commitment to learning if it's approached as a hobby. It can be frustrating because there's no regular paycheck if it's a job.</p><p id="isPasted"><strong>Rule 3: Use Technology to Your Advantage</strong></p><p>Trading is a competitive business so it's safe to assume that the person on the other side of a trade is taking full advantage of all available technology.</p><p id="isPasted"><strong>Rule 4: Protect Your Trading Capital</strong></p><p>Saving enough money to fund a trading account takes time and effort. It can be even more difficult if you have to do it twice.</p><p id="isPasted"><strong>Rule 5: Become a Student of the Markets</strong></p><p>Traders have to remain focused on learning more each day. It's important to remember that understanding the markets and their intricacies is an ongoing, lifelong process.</p><p id="isPasted"><strong>Rule 6: Risk Only What You Can Afford to Lose</strong></p><p>Make sure the money in that trading account is expendable before you use real cash. A trader should otherwise keep saving until it is.</p><p id="isPasted"><strong>Rule 7: Develop a Methodology Based on Facts</strong></p><p>Taking the time to develop a sound trading methodology is worth the effort. It may be tempting to believe in the "so easy it's like printing money" trading scams that are prevalent on the internet but facts should develop a trading plan, not emotions or hope.</p><p id="isPasted"><strong>Rule 8: Always Use a Stop Loss</strong></p><p>A stop loss is a predetermined amount of risk that a trader is willing to accept with each trade. The stop loss can be a dollar amount or a percentage. It limits the trader's exposure during a trade. Using a stop loss can take some of the stress out of trading because you know you only lose X amount on any given trade.</p><p id="isPasted"><strong>Rule 9: Know When to Stop Trading</strong></p><p>An ineffective trading plan and an ineffective trader are two good reasons to stop trading.</p><p id="isPasted"><strong>Rule 10: Keep Trading in Perspective</strong></p><p>Stay focused on the big picture when you're trading. A losing trade is a part of trading. A winning trade is just one step to a profitable business. It's the cumulative profits that make a difference. Emotions have less effect on trading performance when a trader accepts wins and losses as part of the business.</p>