The number one way new traders fail is by counting the money that could be made on the trade when they should be focusing on how much they could lose on the trade.
To succeed you must be able to accept the risks and apply money management techniques such as stop loss orders, max daily loss limits, and account draw down rules.
Trading losses can end a career in a matter of a day, and hour, or in extreme circumstances even a few minutes. Here I outline some of the ways I have dealt with losses in the past and how I got over the hump.
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.
