Series "Effective capital management - The key to success!"While waiting for the results of the trading plan. There is a little experience for those new to the market that I want to share with you. It is also the lessons I have experienced. If you have any questions, please leave a comment. I will answer for you.
🌟Lesson 1: Why do we need CAPITAL MANAGEMENT
📌 Many people after suffering financial losses often have a feeling of fear. But they really do not understand where their fear comes from and what they are really afraid of?
📌 We all cannot really distinguish between the fear of LOSING MONEY and the fear of the MARKET.
📌 The fear of losing money mostly comes from players with less than 1 year of experience and they do not know how to manage the capital assets they are holding. They enter the trading profession mostly with the money they have saved their whole life, an amount of money that is too large compared to their financial reserve.
👉👉👉I temporarily call this the TRADE OF A LIFE.
⚠️⚠️⚠️Its characteristics are easy to recognize
They often use 100% or more than 50% of their total assets to participate in the game, but they are essentially newbies.
Therefore, when they lose, they are easily held back by a negative account loss of nearly 80%.
Then they call for help everywhere and easily fall into a crisis and mental stress.
⛔ This is a fear that easily leads to despair.
📌 Fear of the MARKET is different:
Fear mostly comes from players who are just starting to analyze, explore and have a little experience, but still lose.
This fear lasts and gradually makes traders respect the market and be less arrogant when placing orders.
✅ This fear is good:
It helps us be more serious about capital management.
Reduce excessive sublimation in trading.
Know how to respect the market.
💡 Fear and respect for MARKET is respect for your assets. 💎 THAT RESPECT IS CALLED: CAPITAL MANAGEMENT.
Let's wait for Part 2: Instructions on how to effectively manage capital for beginners
