Comment on Mr Consistent returning incredible returns
commented on
23 Jan 2014, 09:23 AM
PK,
Good questions.
1. Back testing would obviously give you confidence to pull the trigger but what would help you when you face a losing streak? I started out with 1 lot, followed my system to the dot. It is really important because it creates that ‘discipline’ brain muscle in us. And, slowly and gradually move up in size. Remember, we are all in this for the long haul..no hurry. But, if a trader is in pressure to make money right away(and big), market will show him the road to adversity.
2. If you have hurdles in these aspects – 1. Reduce size..i can’t stress this enough, 2. Create a plan and follow it, 3. Do not trade for monthly expenses (you can start withdrawing money for your expenses in the later stage but not when we have issues in these aspects..i believe these aspects stem from the urge to make money right away). So, please have backup money(to cover expenses for 3-4 yrs) while you learn trading.
3. I have answered this q previously. But would answer again. It took me around 3 years.
The second point needs a big answer(more details more on the pointers) but hope you get the point.