To build a complete trading and investing plan, split your money into a long-term core account and a small swing trading account. Set strict daily risk rules to build discipline, use a trade journal to study your emotions, and create a mandatory cooling-off period after any loss to stop revenge trading. [1, 2, 3, 4]
- Put most of your money into safe, long-term assets.
- Buy broad market funds or strong companies.
- Do not touch this money for years.
- Let this core grow while you practice active trading on the side.
- Use a small amount of money that you can afford to lose.
- Risk no more than one percent of your total account on one trade.
- Plan your entry, profit target, and stop loss before you buy.
- Trade with a written checklist for every setup.
- Step away from the screen after a loss or a big win.
- Breathe slow to lower your heart rate when you feel angry or greedy.
- Set a hard daily stop loss rule.
- Lock your trading platform for the rest of the day if you hit your limit.
- Write down why you took the trade in a journal.
- Your current experience level in the market
- The size of the account you want to use for swing trading
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