Читать книгу Candlestick Charting For Dummies - Russell Rhoads - Страница 21

There’s money to be made on the security markets, but don’t be fooled into thinking that earning profits is easy or effortless. Many smart people have taken on trading as a hobby or profession and been quickly humbled by poor trades and losses. Do your homework, and practice wise money management; otherwise, you could end up joining their ranks!

By “do your homework,” I mean look at charts and develop a trading plan. The more you prepare, much as you would for a test, the better your trading results should be. I’ve seen a direct correlation between the level of trading success I’ve achieved and how much time I put into preparing for trading situations. As far as wise money management goes, the key is making sure to take a loss when it becomes apparent that a trade isn’t going to work. Take the loss, and move on. Take this loss early and quickly before it becomes a much bigger loss. As the old Wall Street saying goes, “Your first loss is often your best loss.”

The most important rule for managing your trading and investing funds is to not risk money that you can’t afford to lose. There are many obvious and unforeseen risks in the financial markets. If your lifestyle has changed dramatically because a trade or investment wiped out your account, you probably put too much of your personal net worth on the line.