Sunday, May 13, 2012

Under trade until you prove yourself


Do about 20-30 trades in real time. Even lesser if you plan to be an investor. These should involve a very small % of your trading capital. For eg: risk 0.50% per trade. You may lose money, that's ok, it is part of your education to become a trader. Loose less when you are learning. So even if you have a large trading a/c, risk small amounts while you are learning. Learn by making mistakes that do not cost you money.

After 20-30 trades, stop & evaluate your progress. Go through your trade journal. If you have lost money in few trades, consider them as your learning process. If you have made money then re-evaluating is most important. Having an ego, that you are successful, is a big enemy for your trading business.

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