Important principles a novice trader need to know

What's the first things a novice trader needs to know to survive in the "jungle" (the market).

1. The market is always right. Never think that the market is wrong. Never go against the market. Let the market tell you what it is doing. Respect the market. - How many times have we entered a trade thinking that we made the right trade and yet the market goes against us? Then we always blame the market, but ourselves.

2. Never rush into a trade or over trade. Never enter trades when you are not in the right fame of mind - For those of us holding full-time jobs, the mind just gets too tired to think by the end of the day. Sometimes we are just too eager to trade, 'cos we want to catch every move in the market.

3. Always enter trades with predetermined stop loss (Good money management strategies). Have predetermined profit targets, if possible. If not, trail with manual stop loss adjustment.

Trading is about staying in the market long enough to make a profit. ie. capital preservation is important. Of course, having a good trading plan will always go a long way in ensuring you do not over trade, and that your capital is preserved.