Know Your Money

Know Your Money

Nothing in trading is guaranteed. Be prepared to lose capital in the beginning. Just because you have taken a course or just because you have made money from trading does not mean you should automatically quit your job and become a full time trader.

Before becoming a full time trader, you must be financially secure. Stress of having to make money will kill your trades and affect your overall performance. You will lose your money if you have this obligation to make money from the start.

Know Your Risk

Everyone will have different risks in which they are comfortable in. Some people will risk 1%, some will risk 5%. You need to find the amount of risk that you will be comfortable in. This will help your trading and keeping your emotions in check. To find out the right risk for you, you need to test your trading and see what percent are you profitable and winning. If you have a low risk of winning, having a risk trade is not a good idea. If you happen to have a consistent winning trade percentage, your risk might be slightly above the average person. Know yourself, know your trading, and know your risk.