Don’t Waste Your Time Trading A Small Account
If you have $10,000 to put towards your trading account, don’t waste your time. As a matter of fact if you have $15,000 or even $25,000 in your trading account, don’t waste your time…..
That is, DON’T waste your time with CARELESS MISTAKES because every trade counts!
The Learning Curve is Flat
The learning curve for learning how to trade for a living can be extremely flat, that is you may spend countless hours learning all there is to know about the trading the markets, but you aren’t seeing a return in profits. Your time spent learning increases, but your account stays the same, or in many cases shrinks.
**If you want to win at this game and become consistently profitable over time then you absolutely, positively, must be disciplined 100% of the time, all of the time**
Don’t Waste Your Money on Tuition
Many people like to credit their trading losses in the early years towards “tuition” or “paying their dues” and while there is something to be said for learning by doing, there is no reason for justifying a trading mistake. Every error you make in trading is costing you money!
That First Step
When starting out as a trader, you probably traded a practice account for a couple of months and began to learn the ropes, testing your strategy. After becoming anxious you make the switch to live trading and realize that most of what you learned goes out the window when you’re in a live trade. Your emotions come into play and your methodology becomes foggy.
And the Light Bulb Goes Off
There are many “light bulb moments” along the way, but limiting the mistakes when you’re trading a small account is crucial if you want to prevent blowing up your account.
3 Trading Mistakes That Will Lead To Disaster:
Impulse trades – If you find yourself clicking trades randomly you need to stop immediately and reevaluate your trading plan!
Revenge trading – Just because you had a loss doesn’t mean your next trade needs to be a home run, try for consistent singles and doubles with a few strikeouts in the mix.
Trading too big for your account size – If you are risking more than 1% – 5% per trade you are trading too big..enough said.
The Only Guarantee
While no one can guarantee your success trading the markets (if you come across such claims be leery) I can guarantee you that if you make any of these 3 trading mistakes you will lose money.
Treat your trading capital like you would your children, or if you don’t have children, like a one of a kind Porsche, you wouldn’t throw your kids in front of a bus so don’t piss away your trading account with avoidable mistakes.
Patience pays in trading the markets so don’t waste your time trading a small account.
Every trade is a valuable step towards generating consistent income trading for a living.