The stock market is seeing a significant increase in part-time traders chasing meme stocks for quick profits, but studies show that 70-90% of day traders lose money. To increase survival chances, traders should have a strategy, focus on exits, never average a loser, and avoid falling in love with a trading system.

Having a plan, setting stop-loss and profit targets, and sticking to them is crucial to successful trading. Averaging losing positions can lead to big losses, as it often compounds initial mistakes and results in a blowout that kills accounts. Avoiding big losses is key to long-term trading success.

Traders should not fall into the trap of relying on a magic trading system, as hard work and analysis based on fundamentals or chart patterns are the only ways to increase odds of a winning trade. Following these rules won’t guarantee profits, but they will help avoid common mistakes and give traders a fighting chance in the market.

Read more at Yahoo Finance: Three Rules to Follow for Novice Energy Traders