Tradingšš - is gambling
But only for those who donāt understand what theyāre doing.
1. Trading is a business
If you want to develop strong skills, you need to treat trading as a real business.
ā¢ Itās not a hobby.
ā¢ Itās not a way to get rich quickly.
ā¢ Track your expenses (losses).
ā¢ Track your income (profits).
ā¢ Strive to ensure your income exceeds your expenses.
ā¢ Know your strategyās strengths and work on improving them.
2. Risk management
Risk management can either strengthen or break a trader.
ā¢ Set an acceptable level of risk that you feel comfortable with.
ā¢ Always be prepared to lose the amount you are risking.
ā¢ Never risk more than you can afford to lose.
3. Create a trading system
ā¢ Find what works for you by analyzing your main mistakes, reasons for losses, etc.
ā¢ Follow your trading system.
ā¢ Repeat your trades until you have enough data to optimize and improve your system.
This is how you build a proven and effective system.