Trading less is always the best option!

More work means more pay, this is the normal way of life, but this is not so in trading, that is why in my previous post I mentioned that trading is a different world that must be dealt differently. Traders must realize that trading is not all about winning it is also about losing and the more we expose our capital the more risk is also possible to our account. So if you risk 50% of your account at any given instance, the chances that you will lose 50% is very much apparent, of course to win 50% is also a possibility but in trading its always a 50/50 chance on a trade by trade basis, even if you have a very profitable strategy. This is one aspect that most trader seems not to grasp because they are so blinded by the desire to gain big.

So if you want survive in this cruel market and probably make a living in trading I suggests that you do the following:

1. Never do scalping activities, while a few succeeds but its pretty darn hard for most traders
2. Never involve in high frequency trading(HFT) activities, it is a surefire account burner
3. Focus on working in one strategy only, dont jump from strategy to another,modify when necessary
4. Create or find a reliable swing trade strategy using 4hr or daily time frame
5. Do not risk a total of more than 10% in all of your open trades at any given instance

Trading is a wonderful way to make money online but it can also devastate us financially if we are not taking the right move. Trading less is also another form of risk management.

Good luck and happy trading to all!