Unlock the Secret to Bulletproof Trading: How to Never Lose Money Again!
Sounds like a fantasy, right? But hold onto your hats, because what I’m about to reveal isn’t just another trading gimmick or a mystical market predictor. It’s about mastering the art of money management with a strategy I like to call “reserved money.”
The Dual-Key to Winning in Trading
To triumph in the trading arena, you need two things:
Capital to Invest — You can’t make money without money.
Accuracy — Being right more often than you’re wrong.
While the second requirement seems straightforward, it’s incredibly challenging in practice. Even the best traders are right about 65% of the time, and often, it’s much less.
The Pitfalls of Big Bets
Here’s where many falter: making large bets. When these bets go wrong, they lead to monumental losses. Conversely, small bets that go wrong result in minor losses, preserving your capital to trade another day. But I’m not just preaching the “trade small” mantra.
The Reserved Money Strategy
Here’s the game-changer: admit that your predictions might fail more often than not. Divide your investment into two distinct batches:
First Batch: This is your active trading fund. Treat it as your standard trading account, but keep the investments small and manageable.
Second Batch: This is your reserve. It remains untouched unless the first batch falters, which, let’s face it, is quite likely.
When the first batch underperforms, that’s your cue to tap into the reserved money. This isn’t about doubling down on failure but about giving yourself a second chance to recalibrate and correct earlier mistakes.