The “Trader’s Mindset” micro-blog is the perfect source of inspiration to help you stay focused, determined, and motivated on your trading journey.
Surviving the Trading Game
One of the most crucial rules in trading is always maintaining sufficient capital. Without it, you cannot continue trading, effectively ending your participation in the market. Additionally, losing your trading capital can have disastrous consequences, particularly for novice traders who may require a strategy to cope with such situations.
As a trader, it’s crucial to prioritize the preservation and growth of your capital throughout your trading career. This means developing and sticking to a solid trading plan, avoiding excessive risk-taking or over-leveraging, and always maintaining a cushion of funds to fall back on.
To succeed in trading, you must also focus on survival. This means recognizing the risks involved in trading and taking steps to minimize them as much as possible. It also consists in being disciplined and patient and avoiding the all-too-common trap of chasing after big gains and getting caught up in emotional decision-making.
In short, the key to sustained success in trading is never running out of capital and always focusing on survival. By prioritizing these two critical trading areas, you can increase your likelihood of achieving your goals and avoiding common pitfalls.
