Money Management

What matters for the beginning stock trader or investor is staying in the game.

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We don’t do that by stomping around in the dark.  We do that by utilizing a specific and detailed trading plan.

We list our strategies and techniques we are going to use.  We also detail our money management.  Then we put that plan into action and follow it unerringly.  Or we try.

What is the the largest obstacle  standing in our way?  It is ourselves!  We talk to ourselves every day, all day, and what we say is how we respond to external forces.  Often this conversation is very emotional and confusing.  This is a negative for trading success.  There is no place for emotions in successful stock trading.

In an effort to combat these emotions and to negate their effects I always tell people  that they can use a script.

For the beginning trader the only thing that matters isn’t maximizing profit, following complicated trading strategies flawlessly, or knowing the difference between a strangle and a straddle.  The only thing that matters is staying in the game.

So, what is someone that knows this suppose to do to begin learning the process of trading for profit?  Concentrate on SIMPLE Trading.

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