TradingšŸ“‰šŸ“ˆ - is gambling

But only for those who donā€™t understand what theyā€™re doing.

1. Trading is a business

If you want to develop strong skills, you need to treat trading as a real business.

ā€¢ Itā€™s not a hobby.

ā€¢ Itā€™s 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 strategyā€™s 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.