If your capital is 100k, then start with 10k first. Regardless of the fact that you are going to lose everything in the beginning. It doesn’t matter how many books you read, how many hours you spend listening to trading videos/podcasts. Eventually, you blow up your account, only then will you understand the importance of risk management. This is why it is so important to start small. People tend to ignore this during the learning phase as it is a boring chapter.
So don’t keep doing demo/paper trading, just jump into it, but start small.
And stop watching CNBC or any other TV news channel during market hours. It definitely won’t help you. This only increases the noise and influences your trading decisions. Apart from the rules of trading and the trading terminal, you do not need anything else on the computer screen.
Don’t look for reassurances from Twitter traders.
Suppose you have been doing stocks for a long time, and as soon as you place a trade, you open Twitter or any other trading forums and start looking for posts related to the stock that you have traded on recently, and you keep looking for people who have been in the same warehouse for a long time. … Just to make sure you are on the right track.
Even if you come across certain posts that lack your stock, you tend to ignore them. Therefore, when you see messages that are similar to your trades, you feel more confident. This is complete nonsense. Do not do this. Therefore, do not use any of these social media accounts/forums when you trade.
Above all, follow a trading system with strict discipline. This is the holy grail in the markets, just the excellent performance of your trading system is what separates professional traders from amateurs.
The hobbyist trader feels good after making a good trade.
A professional trader feels NOTHING after making a great deal.
Following mechanical trading systems will help you control your emotions.
