Successful stock trading is less about being right all the time and far more about sizing your bets to make sure that you stay in the game long enough to win.
Here are the most important rules.
1. Always calculate the maximum you are willing to lose on a trade and size your position accordingly.
2. Do this always before you place the trade to enter the market.
3. Set your stop price based on the specific characteristics of the stock.
4. Never risk losing more than 1% of your capital on any one trade.
Follow these rules and you will stay long enough in the game to succeed.