Click Here for Post Three of ‘What Trading Really Is Series’
We talked about the amount of risk a trader has in the market now it is time to talk about how
you feel about money. If you have a big attachment to money then it will cause a big emotional
strain when you lose some of the money.
One of the hardest things a new trader has to learn is how to loose. Losing is part of trading.
Losses need to be looked at as expenses, or cost of doing business. There is no Holy Grail or
magic trading system that just has to be turned on and the money will roll in.
Think about a % of your account, how much you are risking on a trade and are you comfortable
with that. If the risk is to large for your emotions and pocket book then make a smaller
trade until your emotions and pocket book can align with the trade. Look at how much you
could lose versus how much you could make, if you feel comfortable with the win loss ratio
then take the trade.
Once you learn how to make points then the money will come. You can accelerate the amount of
money you make with good money management once you know how to make the pips.