[Day 5] 7 Things To Consider When Trading -- #5. Protect Your Capital
Yesterday I spoke about having sufficient capital for trading. This is important if you want to make real profits and potentially be your own boss. There is no way you'll make $1,000-$2,000/mo. in profits if you plan to only invest a few hundred dollars. Also, if your profits are too small then you won't have the drive to continue. The same amount of effort is needed no matter how much capital you chose to invest, so why not make it worth it.
However, using a large amount of capital to trade with can be risky if you don't know what you're doing. Today, I will talk about an important thing that every trader should be doing, setting stop-losses.
My original article can be found here: 7 Things To Consider When Trading
Table of Contents:
- There is no shortcut to becoming rich
- Money Management
- Trading should be treated as business
- Capital is the key
- Protect your trading capital
- Continuous learning
- Keep going