We’ve been trading for over a decade. Some of us have have been observing the markets, and others have been blowing up their accounts. We’ve collectively blown up over 15 accounts which is probably more than $20,000 over the course of our lifetimes.
Luckily, over the course of 12 years, we’ve gotten the hang of things. We manage our risk very carefully and ensure that we never trade more than 2-4% of our capital. We encourage everyone to have a proper mindset and a strategy which we can help you develop when you start trading. It’s crucial to have an understanding of your financial growth and how realistic it may be.
We have no control over the markets and the faster you accept that, the better of a trader you will be. The key ingredients to managing risk are :
A) Understanding support and resistance will dictate your money
B) Never using more than 2 percent of your capital on a trade. .05 per trade is recommended
C) There is no such thing as a SURE trade.
D) Expect 25-35% account growth within 3 months. **How you actually do is up to your trading strategy and patience**
E) Trading is not for those with a faint heart. If you see your position going in another direction, be patient. Trust your analysis and do NOT change your stop losses.