TRADER’S EDGE RULE: ‘Trade Using Nature’s Laws, Not Man-made Ones’
And, Today's Law Is:
'All Things Start Small and Grow Larger From There.'
Don't try to jump ahead of this Natural Growth Progression!
When small, TRADE APPROPRIATELY FOR YOUR OWN ACCOUNT SIZE! If you're a small investor, there's no shame in this, so, don't sling around contracts and build positions like you're an institution or a multi-millionaire. There will be an unpleasant Reckoning if you do! Be content to invest small and be satisfied with small results to start.
NOTE: In the case of a Market like that shown on the chart, the E-Mini, if that market represents too great a portion of your portfolio to risk, don't do it! You have other options. There is also a smaller version of this contract called a micro e-mini, (Read more about it HERE), which is 1/10 the size (and the risk!). By going to a smaller, more appropriate size, you can still participate in the Growth Factor, which really ought to be your main target (and, not the $$ only). The $$ part will take care of itself as your size grows by careful timing and risk control.
If you adhere to this Rule and those concerning Risk Management, then the Laws of Growth will go to work for you.
Trading at the proper size level for your account size takes humility, ego suppression and strict discipline, so, this is no small matter or achievement! As I've said before, the actual trading process when examined is simplicity itself, however,
Discipline or control of one's impulses, (mostly ego-driven at their core), will pose your greatest day-to-day challenge.
Think of it as like a physical work-out. In this case, you'll be building up your Mental Strength instead of your physical muscles.
Take these Rules to Heart and they'll change your trading life for the better.
Best New Year Wishes: George