By June, you are left with $5,000. That’s 50% of your original capital of $10,000. To get back to the original trading capital, you need to make 100%. Position sizing along with the right mind and methods will prevent a horrific drawdown, leaving you with a mountain to climb.
The US stock market posted a huge gain yesterday! Have you seen this kind of headlines and wondered what journalists were referring to? They were highly likely to be referring to the S&P 500 or Dow Jones Industrial Average Index. Individual stocks are rarely talked about in the press unless there’s big news such as
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Losing money isn’t an option because you don’t have a large trading capital. So you’ll need to time your entry and exit well. This is also applicable to you if your appetite for risk is small. Not losing money is also the motto of Warren Buffett. He famously mentioned, “Rule No. 1: Never lose money.
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The market crashes and quickly reverses. You don’t know if it is safe to enter the market just yet. You stay on the sidelines while many of your friends are making money from the market. The market has been running up and you are fearful to enter because the memory of it crashing the moment
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