What makes traders risk it all?
I think this is something built in, something very primal, very ancient.
Men generally risk it all because we have little patience. We are the hunters, the breadwinners, and the providers. If we aren’t willing to risk our lives to bring home the bacon, who will?
But that is in our DNA, and something (that while honorable) needs to be tempered with our ability to logically reduce our risk and remain profitable. Here are a few ways that we can bring home the bacon, without losing the farm.
- Don’t trade before you are ready. Make sure you well educated before you go up against trading professionals.
- Don’t risk more than 1% of your trading capital, over more than 3 trades simultaneously. This will save you from drawdowns that are insurmountable.
- Don’t delay when it comes time to taking your winnings off the table. Don’t be afraid, or too greedy to cash in.
- Don’t pull your winning trades too quickly. Learn to trust in your signals, and let your winners run.
- Don’t let your ego get the best of you. Focus solely on the profits and you will be successful over the long term.
- Trade with the trend within your time frame. Don’t fight it.
- Focus on the big wins tempered by small losses. This is the secret to long term success as a trader.
- Trade with a plan, and don’t rely on your emotions or others opinions.
- Ask experienced traders for their advice. There is no shame in seeking counsel.
- Trade a strategy based on historical price actions, rather than predictions about the future.
