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Written by Administrator
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Tuesday, 30 September 2008 |
Successful trading is based on three Ms :
MIND is your trading psychology.
METHOD is how you analyse markets.
MONEY is risk control.
Mind: your trading psychology The key to winning is inside the Mind. To become a good investor or trader, you must have perseverance and discipline.
Method: Plan your Trade and Trade your Plan, Do not change your plan during trading hours."
Money: risk control. Overall profit/loss depends on RISK Control. The first goal of money management is capital preservation. If you lose 10% of your capital, you have to make 11% just to break even. If you lose 30%, you need to make 40%, and if you lose 90%, guess what? You have to make 100% just to recover. So before you think about making big money, first you got to think about not risking your capital unnecessarily.
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Last Updated ( Tuesday, 30 September 2008 )
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