To be honest, I am not sure what everyone struggles with in trading individually, but for me personally it is always a few bad trades where I break the rules, undoes 3 months of disciplined trading. Trading, like life, is educated gambling. You see an opportunity, you think any reward will outweigh the negative, so you take it (without putting "all your eggs in one basket"). I think any system could work with the right R:R and money management (which I think is almost more important than the system). Every time I have failed in trading is because I let one or two trades go beyond predefined losses (surely it can't keep going down!). Also a system has to be based on the overall averages, not one or two correct trades per week to keep me in profit. Your mindset has to be, I'm going to place 100 trades and I expect at least 49 will be wrong - but if I trade accordingly to plan I'll get 51 correct and be in profit.
Thinking this way seems obvious, so why do most fail? (I ask myself this as a trader) It is surely due to under-capitalisation - the same reason why most small businesses' fail, they see the potential profit but forget about having enough cash to tide them over during the quiet times or unexpected times.
So make a realistic trading plan, imagine you have at least $30,000. Sudennly trading making a wage isn't so hard. "But I don't have that much!" then hone your trading skills and work until you get that much. The alternative, trade $1000 based on your plan and build it up is never going to happen. Why? based - not on your plan - but on human psychology, greed or fear will destroy you. When you have a decent starting capital you can trade without stress knowing you the only one or two trades will be enough. Now i know every country is different, so if you ask how much capital you need, I would say at least the minimum annual wage in your country as trading capital. No matter your situation most people can save this over a few years, in the meantime hone your trading skills so that when you have enough capital you can profit from day one.
Thinking this way seems obvious, so why do most fail? (I ask myself this as a trader) It is surely due to under-capitalisation - the same reason why most small businesses' fail, they see the potential profit but forget about having enough cash to tide them over during the quiet times or unexpected times.
So make a realistic trading plan, imagine you have at least $30,000. Sudennly trading making a wage isn't so hard. "But I don't have that much!" then hone your trading skills and work until you get that much. The alternative, trade $1000 based on your plan and build it up is never going to happen. Why? based - not on your plan - but on human psychology, greed or fear will destroy you. When you have a decent starting capital you can trade without stress knowing you the only one or two trades will be enough. Now i know every country is different, so if you ask how much capital you need, I would say at least the minimum annual wage in your country as trading capital. No matter your situation most people can save this over a few years, in the meantime hone your trading skills so that when you have enough capital you can profit from day one.
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