Trading is your business. And the most important rule in any business is this: don’t blow all your money. Always protect your capital — it’s the most valuable thing you have. You don’t want to be a baker without any bread, right?
In trading, capital preservation comes first. Making money is secondary.
1. Always use stop losses.
2. Don’t add margin if your account is underfunded.
A margin call is a clear signal that everything you’ve been doing up to this point was wrong. The worst thing you can do is keep doubling down on bad decisions. Stop. Take a break — a month, a year if needed.
3. Analyze your actions and their consequences.
4. Know your stats.
Numbers will tell you, honestly and without emotion, what kind of trader you really are and where your business is headed.
In trading, capital preservation comes first. Making money is secondary.
1. Always use stop losses.
2. Don’t add margin if your account is underfunded.
A margin call is a clear signal that everything you’ve been doing up to this point was wrong. The worst thing you can do is keep doubling down on bad decisions. Stop. Take a break — a month, a year if needed.
3. Analyze your actions and their consequences.
4. Know your stats.
Numbers will tell you, honestly and without emotion, what kind of trader you really are and where your business is headed.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.