If one were to trade purely based on charts without looking or knowing about fundamentals of the company, the general rules would be (it is obviously understood that the person practicing this style of trading has got a proper trading method and plan in place)
To avoid too much concentration. (We cannot bet too heavily if we do not know much about the company) So position sizing takes centre stage.
Follow strict stop losses. So first decide how to go about deciding stop losses and follow them rigorously.
And third would be to avoid getting into illiquid names. Because many times these move from circuit to circuit and its difficult to get in and out or even apply stop losses.
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