Top 5 Rules of Stock Trading

This article is for those who had some experience in stock picking and who have been through the agony or the thrills of losing or gaining money.
The very fact of stock trading is presence of emotions of losing money and risks associated with it.
None of the high money making instruments can guarantee you no risks. High risk means high gains and high losses as well. But there are some rules of stock trading which should be followed as they come from experience of traders rather than just a walk down the Wall Street rule book Here are the rules:
1. First and foremost decide what trade you are playing for. Is it a Buy today sells tomorrow? Is it a Long term bet on economy? Is it the merger and acquisition 5 % gain that you are playing for? Is it pure momentum play?
2. There is an unsaid rule which all the best on the street know and it is cut your losses and get out rather than being emotional about your trade. It is a trade and your reputation is not at stake. You can't be right all the times. The market is supreme.
3. Whenever you are making money have a realistic goal. A 17 % earning on a per year basis is a fantastic bet and one should not be greedy to just hold on to it till it doubles. Always take the profits and let others also make profits on the stocks.
4. Always have money for your immediate requirements and only after you have allocated for the insurance and household savings, should you be betting in the stock market. Never try to bet with the money you had saved for Buying your House.
5. Always buy on negative news and sell on good news. Market always discounts the future. Never try to play on news since the market has already discounted the news and you could be surprised to be a late entrant.With this we come to an end of the article "The 5 most important rules of stock trading".