Whether you are a beginner or an experienced trader, following these principles will dramatically improve your chances for success in the market.

Never trade with money you cannot afford to lose.

Always use a protective stop to limit your losses.

Be patient and wait for the right opportunities. Don't trade for the sake of trading.

If the reason you entered the trade is no longer there, get out.

Every trader has losses; don't let your losses get to you psychologically.

Remember, the market is always right.

If your method of trading is working, don't change it.

If you hit your target profit, take it. Don't get greedy and hope to make more.

Don't try and recover all your losses in one trade.

If it's not going well, take a break for a few days or weeks. Make sure you are in the right frame of mind before you start trading again.

Always have a game plan. Never enter a trade unless you know where you should get in and where you should get out.

Do your homework. By the time you enter a trade you should have a trading plan and know what you expect from the trade. Placing a trade should be the easiest part of trading. If you are still trying to work things out when you enter the trade, you are not ready for that trade.

Once you have defined the trend, only trade in that direction.

Execute at least 100 trades in a demo account so you are familiar with real-time trade execution.

Become part of a trading community where the learning process never stops.