Traders need money in order to trade.....no if and's and but's about it.
In fact....I think that has been my biggest obstacle in trading consistently. I always had placed my stops too close because I was afraid of losing on the trade.
Duh......and then I lose on the trade!
Some people think that a tight stop is wise risk management. Well, not exactly. You will know that your loss will be small, but you have a much greater chance of losing. In fact, the chances get real close to guaranteeing that you WILL be hit! So it's not the way to go.
But having ENOUGH money to trade with in the first place is the answer. I just wrote about that on one of my other blogs and you can read about that right here: Funds for Traders .
See for me it has been the biggest obstacle. And I don't think it matters if you are a Forex Trader, a Futures Trader.....or even stock trader.
On the other hand, suppose you had a steady stream of income coming in. Every month or every week, money came into your checking account.
NOW, do you think that you would be afraid about the stop loss hitting you now? Do you think that your confidence would climb.....knowing that it's no big deal......I have more money coming in this week?
Well anyway, this has been the challenge for me and I did share what I did to overcome that obstacle on the other blog.
Who knows, maybe that would help you also. So check it out: Funds for Traders .
Good trading!
