As a newbie you might blow your account in a matter of months or days if fortunate minutes(lol just kidding)..
Now I am sure you have this professional man or woman you are looking up to. But wondering how to stay in this game for long just like him or her? I got you covered.. Lemme slap you with my "will" power..
The only way to be in this game is to control your risk and emotions.
Let's imagine Rock has a 1000$ account.. Will it be wise to enter all in? That's a big NO. that will be gamble no matter how sure he is with the trade. we have what we call a win rate.. Everybody has a win rate.. If your win rate is 60% then it means in every 10 trades u win 6 and looses 4... But the question is how sure are you not to loose 4 times consecutively? When Rock decides to use 10% of his trading account and looses 4 times he might have lost 40% in just 4 trades and that's insane! Yo!... This is not a demo account!
So how do you about it?
1.Take 2-3% into every trade with that you can always have money to stay in the market for long because if you loose 4 times consecutively with a 2% risk management that will be 8% loss of your main account that is manageable compared to Rock's 40% draw down.
2. Do not over leverage.
3.Reread this post if you blow your account
Safe trading...don't be like Rock.
Now I am sure you have this professional man or woman you are looking up to. But wondering how to stay in this game for long just like him or her? I got you covered.. Lemme slap you with my "will" power..
The only way to be in this game is to control your risk and emotions.
Let's imagine Rock has a 1000$ account.. Will it be wise to enter all in? That's a big NO. that will be gamble no matter how sure he is with the trade. we have what we call a win rate.. Everybody has a win rate.. If your win rate is 60% then it means in every 10 trades u win 6 and looses 4... But the question is how sure are you not to loose 4 times consecutively? When Rock decides to use 10% of his trading account and looses 4 times he might have lost 40% in just 4 trades and that's insane! Yo!... This is not a demo account!
So how do you about it?
1.Take 2-3% into every trade with that you can always have money to stay in the market for long because if you loose 4 times consecutively with a 2% risk management that will be 8% loss of your main account that is manageable compared to Rock's 40% draw down.
2. Do not over leverage.
3.Reread this post if you blow your account
Safe trading...don't be like Rock.