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