COMMON OBJECTIONS .

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Objection #1 : But I won’t make much money trading without leverage?

This may be true in the short term, but medium to longer term you will make money. If you can generate double digit returns over the course of a year you will be right up there with the best of them. Also, if you can prove to yourself that you can manage money responsibly you will have much more confidence adding extra capital into your trading account. You don’t want huge equity swings in large accounts as they are not acceptable or practical for your trading psychology.

Objection #2 : But I don’t want to stop trading if I lose 10% of my account?

Trading can be addictive, so don’t get hooked. Why not take 3 months out of your trading to stick to demo trading. Then, after 3 months of profitable demo trading, get back onto your live account

Objection #3 : But I like the thrill of the market by using high leverage

The 90/90/90 rule is that 90% of new traders lose 90% of their account in 90 days. Even experienced traders can succumb to the pull of the markets. You are never above needing to manage risk. The moment you think you are above the ‘rest of them’ is often the final thought before a fall. The number one cause of trading disasters is using too much leverage. If you want to keep enjoying the thrill of the market in an irresponsible way you need to budget for it in the way that you would budget for a holiday or household expense. In other words, it is money that you should already considered as spent. You are also establishingterrible habits that will prevent trading ever becoming a full time business for you as you will be unable to either attract investors or safely manage larger personal funds. Finally, the thrill can be addictive and may end up in you losing way too much money and that impact will overspill in other areas of your life impacting your relationships which you cherish and your own mental well being

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