Trading is risky and the amateur investor should
limit the amount of money they commit to it.
No one knows what's going to
happen tomorrow or any day for that matter. Also it may sound exciting
but few people consistently make money over a long period of time when only
trading.
I'm not saying don’t trade at
all. But if you are willing to risk your money, put a small amount of your
funds (5-10% max) in a separate account. Use this as your "play"
money and allow yourself to take risks with it. Don't add to that account even
if you are doing well and the market is going up. You really want to see
how trading is in good and bad times. The rest of your money should be
put in something long term depending on your age, goals, and family situation. (more in depth posts coming soon)
No one hits home runs all the
time and you shouldn't only look for them.
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