Lost my first two trading capitals before I started trading with the rules in place: target; stop loss; correct capital allocation per trade. Learnt a lot on Simon's courses on warrants, the SFM TA courses and also Colin Abram's 3 courses. I reckon the worst thing for a newbie trader is to have your first trades as winners! Think you're King Kong and then place all your trading capital on one "GOTTA" win trade. To remind me of my idiocy I keep the sms on my cellphone from SFM I received when 370,000 ECO WAVES hit the barrier....extremely painful. I can tell you exactly where I was and the feeling in the pit of my stomach, disbelief, pain etc!!! Now, smaller trades (10% of trading capital), slightly deeper stop loss in place, hit the predetermined target and sell half, leave the other half to run on a very tight stop loss. Sense of calm as well, especially after reading Trading in the Zone. Best thing for newbies - have early losses!
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