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Mooers' Investing Journal
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Risk Management is not solely about cutting losses. 1. Set y...

Risk Management is not solely about cutting losses.
1. Set your RR, Stop Loss & Gain before entering a trade. Stick to this plan, DO NOT deviate from it due to Fear/Greed.

2. RM is about psychology too.
- Don't jump into trade, FOMO.
- Chase a trade after huge loss
If u r not mentally prepared for trading, 90% u will burned out in a few months.

3. Do Not...
- Jump to live trade after learning a few strategies online or YT. Do your DD, test out the strategies on paper trade.
- Follow the gut instinct of others comment.
- Thinking today is my Lucky day, placing >50% of ur account in 1 trade.
- Double up after losing a trade without SL.
- etc

My point is ... Never believe you can become an expert/winning trader in a few weeks/months.
It take a few of years of learning to just become consistent. (lot of emo/giving up along the ways)
Most consistent trader will loose ~40% of the time & still be profitable.

I would compare trading as to scuba diving.
Scuba diving is a safe but also labelled as a dangerous sport.
SAFE - when u learn all the fundamental courses, both theories & practical. Clock your dive logs consistently. And most importantly, know your gears & maintain them well.
DANGEROUS - when u on a vacation & took a dive experience crash course.
U learn everything in a few hours & put on some wear out gears. Off u go on a boat for your 1st dive.
If u lucky, u will manage & see a few fishes. But if you r not, u will end floating on the water surface, face down.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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Patience, React, Don't Predict
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