Sometimes I log onto this blog of mine and see the glaring headline I have chosen and cringe…..
“Learn to earn $1000-2000 a day”
The key word in that statement is “learn” and I want to emphasize that trading, like all skills, is acquired skill, and it would be a mistake to arm yourself with a thimble of knowledge and expect to conquer the markets, it’s just not that easy. If you read much of this blog, you have seen days when I lose money, make mistakes and in general do a poor job. Mind you, I do not intentionally go out and decide to do a poor job, but the market is a mysterious creature, at times.
To be sure, I want to emphasize the learning aspect of trading as oppose to the greed that all of us feel at the thought of effortlessly earning thousands every day. It takes time and patience to be an effective market trader. I strongly suggest trading on “paper” for an extended period of time before you consider risking your capital. Learn to trade just one of the indexes, they all have subtle nuances that can be distracting. I would suggest the YM or the NQ contracts as great starting places. They both are fairly liquid and behave well, so to speak.
Don’t rush into a trading account and expect to conquer the world. The fact is, most traders bust out in the first 90 days. Keep that statistic in your mind. 90 percent.
Of course, most people tend to rush into the futures markets after having read a book or two and traded on paper for a month…..that’s not enough. Become a student of the markets and test your skill regularly, and for an extended period of time. Get real good. Then start conservatively and trade a single contract. It’s different when you trade with real money, believe me.
