Have you ever heard of the saying “If the shoe fits wear it?”
Well in trading, much like with shoe sizes, you can only trade a size that fits you. Unlike shoe sizes though you can grow into bigger money shoes over time.
Reading books about trading,doing simulated trading, being in trading seminar environments, completing training courses, and your beliefs about trading are completely different realities than trading with live money. Many traders do not understand the emotions, ego, stress, and psychological pain that grips the new trader as they start trading a live account. There is a big difference between trading a $100,000 simulated account and putting up $100,000 of your own money trading. A 10% draw down feels much differently in your real account I assure you than during paper trading and you will not behave the same as you did with play money.
Simulated trading is different from real trading just like there is a difference between playing an NBA basketball video game and then putting on some size 17 shoes and getting in a real NBA game. You better be ready.
How do NBA players get ready, they start playing basketball very young in their neighborhood. They play with other kids their age with pick up games. They grow. They play in Junior high on their school team, they put in the practice and get comfortable at each level before advancing to the next. They play at the High School level with better players and then have to up their own game. They graduate to college and are ready becasue they went up each level of growth. If they are the hardest working players, they are passionate enough, play the hardest, and practice the most they are the ones that grow into the shoes that fit them at the NBA level. They are ready. They have done the work.
If you want to be a successful trader you have to start small and grow. Do not risk $1000 on a trade until you are comfortable with risking $50, then $100, $200, etc. you have to take it one step at a time. Do not trade 1000 shares until you are comfortable trading 50 shares, 100 shares, 200 shares, etc. Do not use margin or leverage until you are completely comfortable trading your full account size while managing your risk per trade. Trading is process like any other professional pursuit, stay humble and do not try to wear trading shoes you haven’t grown into yet or you are sure to fall.