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