Better set your money on fire - NO reckless trading!

Better set your money on fire - NO reckless trading!
What are your next steps towards trading strategy?

Well, I think we all understand that trading is a risky business and that it requires a lot of money and a lot of attention to said money. You are to support your trading account at a certain level and you are to asses every trade in terms of what risks it might carry.

So the next step would be determining your risk tolerance and pinning down the exact number that you can afford to lose in case something unforeseen happens.

And here we have to come to one of the golden rules of trading – do no risk what you can’t afford to lose. If you start trading the money that you need to rent, utilities or food this is where you are risking too much. You need to have a whole separate account for your trading money. Make sure that trading and life expenses do not coincide with one another.

  • THINK!
  • RATIONALIZE!
  • DIVIDE!
  • USE DEMO!
REMEMBER THESE FOUR POINTS!! They might just save you from starving out of your mind!
 

Comments powered by CComment