SteadyOptions is an options trading forum where you can find solutions from top options traders. TRY IT FREE!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.

Stock Trading Basics: 5 Rules for Successful Stock Trading

You might be a stock trader, or just interested in learning more about how to trade and make the most out of your stock investment. Regardless, successful stock trading is not that easy. You must first have the financial capital to start and a very great endurance for risks.

However, with proper preparation, practice, and discipline, you can make the most out of stock trading. Here are some of the rules for successful stock trading:


Don’t Jump Right In

Jumping right in might not be the best idea, especially when it comes to stock trading. It is essential to take your time to list your goals and put in place some set of rules that will help you achieve the goals. The plans you make can include rules on when to buy and sell investments. You should also know the amount of money you want at hand each time. If you are a beginner, consider getting the help of Delta Trading Group. Following your rules will allow you to make self-controlled and thoughtful choices and enable you to trade with assurance.

Always have a Trading Plan

This is a set of guidelines that summarizes a trader’s entry, withdrawal, and principles for managing money for every purchase. Stock traders should always follow a plan. It can sometimes be hard to fight the natural habit of doing things on our own. But doing things that are not part of a trading plan is the main cause of failure and losses. Ensure that you have a trading plan, no matter how simple it might be, and follow it to the dot.

Utilize Technology to your Advantage

Stock trading is one very competitive business. It is common to assume the person next to you is using technology and almost every stock trader uses online platforms today. Technology can be of great help in backtesting your potential tactics. However, it doesn’t stop there. The availability of smartphones allows traders to trade anywhere. You can analyze the market and investment conditions using sophisticated websites and charting software. 

Additionally, you can use bookkeeping software to track the cost fundamentals and ensure appropriate tax accounting.

Don’t Risk all your Money

It takes a lot of time and effort to save enough money to fund a trading account. It is even more challenging if you do it two times. Stock trading is a very speeding industry; this means that chances come up every time. You will therefore have to keep some cash at hand to take advantage of the coming opportunities. Avoid taking irrelevant risks and do everything you can to protect your stock trading business.

Risk Only what you can Afford to Lose

Before using your money to invest in stock, make sure that the trading account is dispensable, and if it is not, keep saving up until it is. You should never assign the money in your stock trading account for anything else. Consider getting money elsewhere for the other obligations like paying for a mortgage and your kids' college tuition. Losing money in trading is scary enough, let alone losing money that was not supposed to be jeopardized in the first place.

Bottom Line

Knowing the significance of the above stock trading rules will help you improve your trading. This requires hard work and having the discipline to strictly adhere to these rules which will help you be successful in all areas.

This is a contributed post.



What Is SteadyOptions?

Full Trading Plan

Complete Portfolio Approach

Diversified Options Strategies

Exclusive Community Forum

Steady And Consistent Gains

High Quality Education

Risk Management, Portfolio Size

Performance based on real fills

Try It Free

Non-directional Options Strategies

10-15 trade Ideas Per Month

Targets 5-7% Monthly Net Return

Visit our Education Center

Recent Articles


  • SPY Short Puts vs. Put Spreads

    In this article I’ll be using the ORATS Wheel backtesting tool to compare the performance since 2007 of SPY short puts versus short put spreads. I’ll look at both risk and returns, and different ways of determining position size to adjust for the differences in risk between the two trades.

    By Jesse,

    • 1 comment
  • Signs that you Are Ready to Start Investing

    If you want to build your wealth, you have to make sure that you invest your money. If you put money into a savings account and don’t earn any interest from it, this won’t work for you in the long term. Your money will lose value because of inflation, and this is the last thing that you need. So when do you invest?

    By Kim,

  • One Year of Diversified leveraged Anchor

    I almost hate to keep saying it, but the Diversified Leveraged Anchor strategy keeps exceeding expectations and performing as designed. To remind our readers, Diversified Leveraged Anchor was created in April 2020 attempting to further increase performance, reduce risk, and to reduce volatility. 

    By cwelsh,

  • Should I Pay Off My Mortgage Early Or Invest?

    Paying off a home mortgage early is a popular financial goal. Most people feel a level financial peace when their home is paid off that is beneficial in many ways. The most common approach to paying off the mortgage early is directly making additional principal payments to the lender on a regular basis.

    By Jesse,

  • Option Order Execution Tips

    As a community of option traders, we all can relate to the occasional challenges of order execution. Best practices for avoiding errors as well as techniques for better potential execution will be the focus of this article.  Like countless others in the Steady Options community, I personally have traded thousands of option contracts over the last decade.

    By Jesse,

  • What Trading Can Offer To A Newcomer

    For any first-time investor, one of the most important questions to ask is “why are you doing this?”. Getting into investment can be thrilling and open up new worlds for you, but it can also be draining both physically and emotionally, with long days and sudden market moves always a genuine risk.

    By Kim,

  • Updated: The Performance Gap Between Large Growth and Small Value Stocks

    Eight months ago on July 21st 2020 I posted an article, The Performance Gap Between Large Growth and Small Value Stocks. Over the long-term small cap value stocks have outperformed large cap growth stocks, although not over more recent history.

    By Jesse,

  • 6 Ways to Invest Your Money That Aren't Cash Savings

    It’s always a good idea to keep some of your money in cash so if there is an emergency and you need money in a hurry, you can access it without having to worry. However, cash savings are not your only option if you have money left over at the end of the month, and there are a lot of other options that could bring greater returns.

    By Kim,

  • Jade Lizard Options

    The jade lizard is one of those bullish spreads with limited maximum profit, and no risk on the upside. It is a combination of a short put with a short call spread . The credit this creates is higher than the span of the spread. To set this up, two actions are required:

    By Michael C. Thomsett,

  • Are Your Emotions Trying To Tell You Something?

    As a trader, you may find yourself frequently trying to ignore or rationalize emotions.  You may have even created your own “solutions” to manage them. You exit early to lock up profit and avoid a potential blow-up if the trade turns against you.

    By Jared Tendler,


  Report Article

We want to hear from you!

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Options Trading Blogs Expertido