I would say that in this market, don't try to make Profit. Try to survive in the Market.
Survive the Market First.
Profit Comes Later.
Just think about it...
If someone goes to the Gym for the first time, would they try to lift 100β150 KG on the very first day?
If they do, maybe they won't even have the courage to go to the Gym the next day.
But the person who starts with 5 KG...
The same person can lift 50 KG after a few months.
Trading is exactly like this.
The Biggest Mistake Beginners Make
But most Beginners make one mistake.
They think...
- They have to make a big Profit in the very first month.
- They take a big Quantity.
- They look for Opportunities everywhere.
- As soon as they face a Loss, they change their Strategy.
What they think they need to change:
Their Strategy.
What they actually need to change: Their Expectations.
They don't need to change their Strategy... They need to change their Expectations.
Trading PsychologyIf I were starting completely new today, my first goal would not be Profit.
My First Goal Would Be Survival
My first goal would be to figure out how to stay in the Market for the next 6 months.
Because if a Trader's Account doesn't survive...
Where will he get the Experience from?
Before learning how to win in the Market, you have to learn how to survive in the Market.
Rule #1 for Beginner TradersProfit comes later.
What Comes First in Trading?
Follow Your Rules
A trader needs the discipline to follow a trading plan instead of making emotional decisions.
Protect Your Capital
Capital is the foundation of trading. Without capital, there is no opportunity to gain future experience.
Wait for the Right Opportunity
You don't need to trade every day. Sometimes the best trade is the one you decide not to take.
Learn From Your Mistakes
Every trade can provide information. The goal is to identify mistakes and avoid repeating them.
From experience, I would say just one thing...
A successful Trader isn't necessarily the one who makes the most Profit.
A successful Trader is the one who stays in the Market long enough for Experience to start working in his favor.
Because spending time in Trading is also an Investment.
And many times, this Investment gives the biggest Return.
βLiving in reality is better than living in the world of illusions.β
β A Lesson Every Trader Should Remember