- Keep your principle safe. It is more important to make nothing on a trade, than to lose your principal.
- Only buy when you think there could be a good multiplier for your investment.
- Repeat rule number one and two.
Just like a business, our goal is to multiply money. A business multiples its money by selling products or services for a profit. While a business multiplies its money from selling products or services, we multiple from our principle. When principle is lost, it can take much longer to regain versus waiting for a better trade setup. Remember, it is better to trade with a little caution, then to have great regret.
If you have not watched our stock trading foundation videos of how to invest in stocks, you should. These videos will help you gain a foundation of how to trade, while keeping these three rules in mind.