Never trade with money you can't afford to lose. Don't take loans for the purpose of investing in the stock market.

Never trade with money you can't afford to lose. Don't take loans for the purpose of investing in the stock market.
• Always have a plan of action for your trading. People who have a plan and follow it (and modify the plan from time to time depending on the market situation) make more money from the stock market.
• Always follow your plan of action.
• Don't hold on to losing stock. It's termed as catching a falling knife, which can cause more damage to your investment.
• Even if your stock continues to rise, you should still sell in accordance with your plan.
• Don't hold on to winning stock longer than you planned; things can all too easily turn against you. Greed is something that needs to be controlled.
• Set a limit for how much you can afford to lose in a day. Use a stop loss judiciously.
• If you lose your limit, get up and walk away; stop trading. If you continue, you could even lose your shirt.
• Accept that you will lose money sometimes and be prepared.