Let's be candid. Making money is the fun part. Thinking about risk -- not so much. However, it is poorly managed risk that is the culprit of many ruined trading accounts.
Get this wrong, and you're finished.
Let's be candid. Making money is the fun part. Thinking about risk -- not so much. However, it is poorly managed risk that is the culprit of many ruined trading accounts.
Get this wrong, and you're finished.
The good news is, there are many tools and techniques that will keep you out of harm's way. The question is, are you disciplined enough to follow the plan? If you are, then you have a very bright and profitable future ahead.
The risky trader throws caution to the wind. They trust their "inner sense" to disastrous ends. Not once, but over and over again.
It's discouraging. You pick a winning stock. You choose a winning strategy. And 7 times out of 10, you're making money. But those losing trades are destroying you.
Big gains are followed by bigger losses. You start optimistic, you quit discouraged, you take a break...and then repeat the cycle all over again until you're broke and beat down.
The market humbles risky traders. Every time.
The risky trader throws caution to the wind. They trust their "inner sense" to disastrous ends. Not once, but over and over again.
It's discouraging. You pick a winning stock. You choose a winning strategy. And 7 times out of 10, you're making money. But those losing trades are destroying you.
Big gains are followed by bigger losses. You start optimistic, you quit discouraged, you take a break...and then repeat the cycle all over again until you're broke and beat down.
The market humbles risky traders. Every time.
Imagine this: You, trading stress free. You approach every new opportunity with a clear mind and calculated risk. You follow guidelines that optimize your wins and manage your losses.
Mechanisms are in place to protect you against situations that don't go exactly as expected.
Your account growth is measured and predictable. This is no place for wild volatility or emotional trading. Your risk management smooths everything out. You've achieved what most wannabes only dream of.
Imagine this: You, trading stress free. You approach every new opportunity with a clear mind and calculated risk. You follow guidelines that optimize your wins and manage your losses.
Mechanisms are in place to protect you against situations that don't go exactly as expected.
Your account growth is measured and predictable. This is no place for wild volatility or emotional trading. Your risk management smooths everything out. You've achieved what most wannabes only dream of.
Even the best traders in the world experience loss. What makes someone a pro is how the loss is managed. The good news is, there are many tools and systems available today that will help you manage risk.
You must figure out how to incorporate healthy risk management practices with your personality and trading outcomes. This is not a one-size-fits-all approach. Most people get this wrong. They try to apply the principles of someone else to their personal trading. But unless they have the same account size, personality, and trading outcomes, this will end in disaster.
This is the most important thing: You must determine the right risk management practices for your own trading account ... or all of the other work will be for nothing.
Remember, trading is a skill -- one that you can learn and enjoy the rewards of for a lifetime. You can do this! Today. Right now. The opportunity is here.