Three Mandatory Steps for Beginning Trading
Step 1: Setting Aside Trading Capital
You and you alone must decide on the level of risk/speculative capital allocated to trading. Do not trade with money you cannot afford to lose. It is critically important to exercise good risk management. Do not become emotionally involved in any trade.
Invest whatever amount of money you can afford to lose without your way of life being materially affected. If those funds place you at risk of sleeping on the street, do not use those funds to trade!
TradeWithPros realizes the common and foolish notion that the stock market is easy money with little work. We understand that misconception may tempt individuals to get into the game at any cost. We at TradeWithPros disagree! The stock market can be an excellent living, but with hard work and dedication. Nothing in life worthwhile is easy!
DO NOT:
Use credit cards for capital, NEVER!
Use home mortgages or equity lines for capital, NEVER!
Use money that you have to return to any individual or entity for capital, NEVER!
Risk capital means just what is says: Capital at Risk!
Speculative capital means just what it says : Capital Speculated With!
Next: Step 2: Picking Your Broker