I worry about being too honest here. 😛 Talking losses, study and work, even I feel scared sometimes. HEHEHE Well I tell myself, at least they know BEFORE starting than diving in and finding out later. What’s the difference? Your bank balance. 😛
I do have a point, right?! 😛
Dream Shoes -Via Uno
Ok so let me make it up to you and tell you what excites me about this Trading business. What keeps me dreaming about it (like a lovely pair of shoes LOL).
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Top 5 Reasons to Trade
- Very important to me as a working Mom – I can make money without “me”.   Once I’ve set it up, I can let the trade move even when I’m out on playdates, work, sleep or go on holiday. Time is very important to me, I am multiplying my income and time by employing money. HOW: Selling time with Call Options, Stocks with dividends
- I can make money from nothing. I just use my money to make more money, over and over and over, and eventually take out my capital. HOW : This can be done by keeping in mind the good old concepts of Velocity of Money and Infinity.
- I can make money in Up, Down and Sideways market. Great in these times — most assets need a rampaging bull market to be profitable — not much of that now!  So  HOW: Get the market condition and strategy right together and you can trade so many opportunities in any market, that’s glorious abundance right there.
- I can be wrong and still be profitable. You know how hard it is to always be right, right? The only bad thing with this is you limit your profits. Still you don’t lose money and for a beginner, this is a big help. HOW:  Use Options strategies like Covered Call, Spreading and Straddles.
- I can risk small and profit BIG. HOW : Position sizing will tell you how small you need to risk that will keep you trading, Options will let you use that to reap Big profits.
 Oh, did I tell you that you really really really need to be good? 😛
Let it Grow!
Money is a precious resource (I can think of much more pleasurable way to lose it!)  😛   The Top 5 Reasons to Trade are not only “nice to have” lessons  these are my guiding principles and how I trade (after rising from the ashes). Â
Sustainable - photo by AJ Mallari
OK so let’s get this right — once you’ve got your funds for trading, let it grow.  Reinvest whatever profits or money you make from it. Don’t touch it, OK? We talked about allocations earlier (in Fun with Funds – Shop and Trade), about needing to put money in different places. Don’t include your Trading / Investing profits there. It’s small to begin with, keep it growing in your trading account. This will allow you to grow your account enough that you can increase your position sizing and grow faster with less risk. Â
 Your Trading will be much more sustainable.   Or reserve it for that once in a blue moon trade that has got a massive profit potential. (There’s a well-known story of George Soros trading against the British pound sterling with $1 Billion win – how much do you think he bet on it? $ 1million dollars is probably small.) Save it for those kind of trades.
Tell yourself (and whoever else is interested in the money you make) you’re not touching that money. Not in a million years… or even just  5.  :p
Let it grow! Let it grow! Let it grow!
Let me grow - photo by Sheila Sanga
