Before you even start trading, you need to know what to expect from trading.

Have realistic expectations, and understand the risks of trading. Set small goals. Don't shoot for the stars. Try to make $100 per week on a trading account of $5,000. That would be $400 per month, or 8% based on your capital. Per month!!!

You might not achieve your weekly goal every week. There might be some weeks when you make less. Or you might even lose some money. But in the long run you should be ahead and see your account grow. And with proper risk and money management, you should be able to control your risk while growing your account.

So the key is to find a trading strategy with a winning percentage of 50% while achieving a reward-to-risk ratio of 1.5 to 1.


Translate to English Show original