Trading Philosophy

Written by Administrator

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.

Last Updated ( Tuesday, 30 September 2008 )