Learning the hArD way?!
Of particular interest to traders in *stocks-n-shares* or *forex* etc!
Why *MONEY MANAGEMENT*
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*RISK MANAGEMENT* is very, very important when dealing in stocks and shares/forex, etc!
No matter how well you research your "stock picks",
you will get some trades that will go against you!
You might have a *wonderful* system for finding "rock solid" stocks,
but sometimes markets conspire against you and you get hit for *sIx* !!
There will be losers, no getting away from it!
Even *legend* investor, Warren Buffet, gets it wrong from time to time!
So get over it and make it "kwik"!!
To be successful as a trader, you need to deal with your losers pretty swiftly and move on!
It’s how you deal with the losers that will determine whether you are going to "make it" as a ....................... successful ................... trader!
Like I said, you will definitely lose trades - unfortunately!
Very important to *STICK TO SOLID* risk/money management, on every single trade you undertake, or the *****UNDERTAKERS***** will whisk you away, and they won't be offering you any *WHISK-EY* in exchange!!!
I would definitely set aside a SEPARATE amount of money to trade with?
This should be something you can afford to lose - in the WORST case scenario.
Once you have this SEPARATE "bank" of money, whether it is £1000/£2000/£10,000 or whatever, I would only RISK 1% or 2% of the "bank" on each trade!
For example, if you start with £2,000, 1% would be £20. 2% would be £40.
After closing the trade, whatever your new balance is, just place the same 1% or 2% of your NEW balance on the next trade, and so on.
This helps to PROTECT your capital, and you march on "ALIVE", rather than.................. "dead"!
A lot of new traders "freeze" when starting, they just can't accept a loss!
They just hang on and on and on, hoping and praying the price of their selected stock will recover and they will become wealthy?!
It just doesn't work that way!
PROPER RISK AND MONEY MANAGEMENT IS THE KEY WHETHER YOU ARE GOING TO STAY "ALIVE" OR .............!!
So take NOTICE from day one because there is NO alternative!
Hope this helps??
I learned the "DEAD-WOOD" way, 30+ years ago!
So, don't be an *IdiOT* like I was !!
Haa Haa!
Don't *DiE* .......... LiVe to ....... trade another dAy!!!
GOOD luck .......... 'cos you'll need it ( if trading without proper management)!
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Thank you but not for me.
Hi George!
Thanks for your comments!
Appreciate your time.
Wish you well.
Best Regards.
Jaspal