June 22, 2013 at 7:16 pm
Any thoughts about, How long should one trade to realise that he/she is not cut-out to be a trader?
June 24, 2013 at 11:58 am
“Any thoughts about, How long should one trade to realise that he/she is not cut-out to be a trader?”
A very good question because not everyone is meant to be a trader. I think the first requirement is can you afford the losses? If you can’t afford to lose everything you’re trading with – at least at first – you shouldn’t be trading. Stick with more conservative investments until you build up what we call “Vegas” money that you can stand to lose.
Also, if you find yourself violating your own rules, you’re probably not meant to be a trader. For example, while a lot of advisors, like John Jagerson and Wade Hansen, advise against using stop losses on trades, if you set a personal 40% stop loss for a trade, but continue to hold the trade even after it’s dipped below that, you may want to think twice about trading. Discipline is a huge part of trading, so if you can’t stick to your guns, it can create a lot of problems for you.
And if your open trades are keeping you up at night, trading probably isn’t for you, either. You need to be able to walk away from it and not have it consume your every thought.
So, if you’ve got the money and you’ve got the mental and emotional capacity to let the trades play out, you’re halfway there.
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