Two important things have surfaced so far.
1. Losses in the first 3 years of trading are inevitable. So, plan your first 4 years of trading very carefully as you will not have any income from trading and further you need to face continuous losses during this period. Ideally you should have 4 years of living expenses. Expect atleast your first 3 trading accounts to blow out. It is wise to spread out each trading account to last for atleast 1 year. For your first 4 years of trading, your first year trading a/c is to be funded with 8-10% of your funds (which excludes your 4 years living expenses). Remaining amount is to be put into safe interest bearing instruments so as to generate sufficient interest to fund your 2nd and 3rd trading a/cs so that your losses will not eat into your base capital and keep you in the game for longer periods.
2. Trading is basically a skill which can be mastered by self training which imparts a nice blend of trading psychology, risk control and control of emotions such as fear and greed. Good Base is important here to make. It is possible by regular accessing of internet sources (be smart to distinguish between useful and crap) and from books written by well known authors.
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Its my humble request to all to participate in the poll and make it a sizable sample to derive the facts of trading.
Hello,
I totally agree with ur 2nd point ...,the first point is varies from person to person .
To shorten the learning curve, one has to acquire the things u said in ur 2nd point as early as possibe
Here I want to mention one of freind story.....,both of our trading career start at nearly same time.
He traded the pivot method for 2 months and made lot of money nearly 130% ,in later 15 days he loses 50% of profit he made.he stopped the trading,For 1month
He came back to trading and in a month he losses another 27% of his profits,but from 2nd month of his came back he again started to make profits,till now he is trading the same method with different approach which he mastered in 1 month gap he taken.
U people might be thinking that what he has done to his method...,he realize that there is problem in exit strategy(which is a deciding factor for make or break).
So his journey of trading started with no initial capital wipeout.I know its a rare case.what iam trying to say is u no need to wipeout ur account 2 or 3 times to learn trading if u understand what takes to trading...,and its only ur mind/psychology.
Regards,