The single biggest mistake that new traders make is risking too much money too soon. They somehow feel entitled to profits. Here’s some advice, you ‘earn the right to raise your risk.’ Thus, when you open up your trading account, start slow and start VERY SMALL. Let’s say you open up a trading account with $30,000, which is the minimum required for a ‘retail pattern day trading account,’ you should be risking no more than $25 per trade. This means, if you lose or make a mistake you’ll only be out $25 or slightly more if you mess up.
In the begi ing your goal should not be to make money. Your goal should be to learn how to trade. In fact, for the first 2-3 weeks you should be using a simulator so you can learn the ins and outs of your platform. Then slowly transition to real money, in very small increments. I want to make this extremely clear: I don’t care if you are Bill Gates or anyone in between, you absolutely SHOULD NOT be risking more than $25 per trade when you start. If you so, you are simply throwing money away.
