“I am always thinking about losing money as opposed to making money.”
– Paul Tudor Jones.
Trading in financial instruments becomes gambling when one begins to bet on the Market by listening to emotions.
The euphoric trader thinks about the profit she can make in the Market but forgets the risk she’s taking with every trade she carries forward, plus the charges and taxes involved in the transaction.
It takes a lot of little and big profits to increase your equity curve, but one significant loss to eat away your entire account.
Suppose you worked hard for three months to earn a significant profit, and one day you lost your temper and took multiple trades resulting in losses. The average yield is zero or negative. Now you’ve to put money into your account by cutting your expenses.
Trading in financial markets is easy. Anyone with little knowledge can become a trader, but getting the title of a consistently successful trader is challenging. One needs a discipline crafted from the Steel of Bethlehem.
If you can develop that, the money is in your lap.
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