What’s the big secret, anyways?
Secret to what?
You know, making big bucks and all…!
Why are you asking me?
You look like you know things, and you talk the talk, so I presumed you walk the walk too.
Well, now don’t be surprised, but there’s no secret.
You wanna make big bucks?
Yes, yes, of course I do.
Ok, then first define your risk profile. Know how much loss you can stomach.
When you trade, your money goes on the line. And that’s a game-changer.
Coz when your money’s on the line, your emotional framework switches on.
That’s when you get to know yourself. That’s when you can define your risk-profile.
Just manage your trades properly, according to the rules of your trading system.
Yup, just stick to your system. Cut losses when they are small. Let profits run.
I’ve heard that one.
Then have you also heard that it’s very easy to say, and most dificult to follow?
Because when your money’s on the line, it is most difficult to take any loss.
And when you show a small profit, you badly want to book it.
Our natural instincts go against what we need to do to succeed as a trader.
I see now.
That’s why most traders are unsuccessful, and they eventually go bust, or quit.
Hmmm, dunno if I want to be a trader.
You could try your hand at investing, though. There, one proceeds in an opposite manner.
Hey, why don’t you tell me about it, like right now?
Maybe some other day. First digest all of this, ok?