Trading Educators Blog
Counting the Cost
Almost anyone who wants to succeed needs to ask themselves certain questions before beginning to trade. Essentially, it is a matter of counting the cost BEFORE, not after you decide you want to pursue trading as a serious part of your life.
What time period trader are you? How long do you feel comfortable holding a trade and how such financial risk can you comfortably assume on a one contract basis? How much money would you need to lose before you quit trading? How much would you need to win to quit? You should know the answers to these important questions before trading, and review them frequently. Your money management skills are the most important tools you have to trade the markets. With good risk averse money management skills, and even a mediocre trading approach, you will be successful. With a great trading approach and poor money management skills, you will lose money. Remember, a winner will find a way to win with a losing trading system and a loser finds a way to lose with a winning trading system. No man with a failed home life truly achieves any success.