You may break any rule and some time it may be profitable but to sustain in market you must be disciplined. Please go through the points
- Trade with unbiased mind
- Always use stop-loss
- Trade maximum two in one day
- Always trade in the money options
- Never try to average your option holding even if you are in profit
- If your six sense push hard to average take inverse option to minimize the risk
- Book your profit every time either at your pre decided nifty level or pre decided profit
- Never think of buying options with less than Rs. 20 it is always no no no no
- Be happy with what you get, never be impulsive by missing golden opportunity of profit
Never try to catch falling knives,
An exellent blog post on the expectations from trading is available at Carl Futia's Blog. Readers MUST read this post in full.
Some Excerpts are:
I have been in this business full time for nearly 30 years now. I have known many traders. The majority of them were only in the business a relatively brief time. Most of these left because they lost money but some left because, even thought they were making money trading, they couldn't stand the constant frustration traders experience.
So as a practical matter you should count yourself fortunate indeed if you consistently capture a small part of any given market swing.
There is much more. Go to the blog and read the post, not once, but over and over again.
Some more good trading post
Richard Donchian's rule
Selling out of money options
Bramesh's Technical Analysis