​Here are Alan Newman's trading tips to win the stock market game​

Alan M Newman, founder and editor of Crosscurrents Publications holds a Doctoral degree in Literacy.

Newman has formerly enjoyed careers in acting, computer programming, game design, and real estate. Newman was also a member of the Market Technicians Association and has been widely quoted for years by the financial press, media, and other newsletters and has written articles for BARRON'S.

Newman also came up with some principles, which can help investors win the stock market game-

Newman says investors should learn all the rules, such as placing limit orders, stops, good-till-cancelled orders etc.

"Find out everything you can about the ground rules as well," he says.

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Newman says investors should know the pain threshold and don’t linger in a bad position, especially one that is moving rapidly against them.

"It may get worse. Much worse. Never freeze like a deer caught in car headlights in the middle of the road. When in doubt, exit the position," he says.Newman says investors should know the pain threshold and don’t linger in a bad position, especially one that is moving rapidly against them."It may get worse. Much worse. Never freeze like a deer caught in car headlights in the middle of the road. When in doubt, exit the position," he says.

Newman says if investors cannot run the risk of being 100% wrong on the position, they must change the odds to 50% by exiting half the position.

"Then, you will only be 50% right, but you will never be 100% wrong. If the position moves in the direction you initially anticipated, you will profit. If the position moves further against you, you will lose less," he says.

Newman says if the position is going against any investor, it is probably for a very good reason and they shouldn't add to the punishment by increasing the size of the position.

"If the position moves further against you, lowering your average cost only accomplishes one thing — you lose more money!," he says.

Newman says conversely to rule #5, if investors’ confidence increases, then they shouldn’t be afraid to pyramid their winning trades.

"Investors of all stripes generally have very good hunches and intuition, especially when decisions are based on fundamentals they are familiar with, like a new product. If the product proves successful, it may ensure the company’s growth for longer than initially expected. If your confidence increases as a result, consider ramping up your position," he says.

Newman says investors should always maintain a modest cash reserve to take advantage of a new situation.

"If you are already extended when a good new idea pops up, extending yourself further by buying with borrowed money can only increase your overall risk if the market turns against you," he says.

Newman says if investors don’t read the financial journals, at least they should read the newspapers.

Newman says traders should bear in mind that listening to others' ideas is not the same as their own experience or common sense! Chances are that they are at least as smart as the broker who is recommending the stock.

Newman says when it gets too easy, investors should pull back and trade less as that usually happens when the trend changes so fast.

He further believes that losing streaks can seem to go on forever.

"When you’re on a losing streak, pull back and trade less or stop altogether for a week or two. Smell the flowers. Read a book. Call up an old friend. A fresh perspective will usually work wonders. Last but not least, remember, it’s only money," he says.

(Disclaimer: This article is based on Alan M. Newman's various articles and speeches)