How to stop sinning and start making money from trading?
We know – you are tired when people give you unsolicited advice and tell what to do:
“Don’t do this”
“Don’t do that”
“Trade this way, you’re doing it wrong”
But whether you like it or not, there are commandments of trading that you need to observe. Break any of them, and you will be doomed to hell. And in hell, as we know, there is no trading terminal – so stop sinning now.
Sin #1. Trading with $100
“But I trade with a bit more than that!” – you may argue. “Besides, my income isn’t that big, so there’s not much that I can save up for trading”.
Let’s get this straight. Why did you get into trading in the first place? To become independent, solve some of your financial issues and start earning more money, right? But trading with just 100 dollars can only cause new problems — you’ll be spending your time on trading, hoping for success, but all your efforts will be for nothing. Most likely, you’ll be getting zero results. Zero, zilch, zip.
“Whatever you say, I will accomplish my goal anyway!” Oh well. Let’s say you will. Imagine, you do manage to turn your $100 into $1000, or even $10,000. But let’s try to figure out what you would need for this.
To make $1000 out of $100 you need to open 4 winning trades in a row while maintaining the 1-to-2 risk to profit ratio. Seems quite real, doesn’t it? Just four successful trades, right? There’s just one caveat. Each time you need to bet your entire deposit. So, let’s indulge in a fantasy:
Ready? Go: we place a trade betting our $100 and earn $200 from a rapid market movement. Great job! The account balance is now $200. So, we bet the entire deposit again. And…and Nailed it! This time, we make a $400 profit. But we need a thousand. It’s time to bet your $400. But what if you lose? What if the price hits the stop loss by 2 pips and only then moves according to your forecast? Or what if it fails to reach your desired take profit, reversing just a few pips from the predefined level? Damn, what should we do?
Exactly! You couldn’t have thought that it could go this way. You weren’t ready. And what is most interesting – you don’t need to be ready. There is no need to risk everything you have and go all-in all the time because there’s a much easier way:
1. Enough with the fantasies. We all need to face the harsh realities of life. That’s just how it is.
2. Don’t quit your job. Save $50-$100 every month from your salary. Don’t get paid enough? Take some training courses, improve your skills and competency or try to find a better job. Trading involves investing. That’s how it works. To make money, you need to invest it first. That’s the number one rule, you can’t avoid it.
3. Save up your first thousand dollars. Place your trades with a volume from $10 to $50 and earn your well deserved $20- $100. But this with much less risk of jeopardizing your entire account and losing everything.
We firmly believe that you will never sin again. And the Devil will have less job to do, and life will get much better.
Be savvy: don’t indulge in fantasies and keep it down to earth. Keep your trading lot at 0.5 per trade and you’ll be golden!