I am relatively new to trading. Actually papertraded so far for about 3 months, kind of mixed results, but the last month I seem to be getting a firmer grasp of things – I am well ahead several thousand (paper) dollars. So I am about to get my feet wet in the real markets. Can you advise how much shall I open my real trading account with? Thanks, Jim
Well Jim how much do you have?
Actually, it aint how much money you have but how much your willing to RISK.
The trader with 3K acc obviously wont be able to trade the same way the guy with 100K can.
I guess you want to review your TOTAL financial situation before even thinking of opening a trading account. You probably want to have an adequate life insurance coverage in place, or sufficient emergency savings before you get into any speculative venture. Then, determine how much your willing to really risk. Meaning, really risk.
Dont try to fool yourself. You have to assume you could lose the whole account, and in rare cases, even more.
Now if losing THAT amount would really hurt you, then youd better lower your sights and scale down your plans to a more comfortable level. Now you may think you have the jiggle and the desire to trade well because you want to get rich. But successful trading also requires hard work and tough self-discipline.
The question is – are you willing to make the sacrifices necessary? You may be the most successful dentist or lawyer or plumber in town, but that alone doesnt mean youll be able to master commodity trading. Remember that it probably took you a lot of time and experience to get where you are profesionally today and you shouldnt expect the trading pits to be any easier. Also, you need to know yourself well.
How much pressure can you handle? Where is your *breaking point*? How greedy are you? In other words, you want to become aware of your emotional response to each and every aspect of trading.
If your a high roller type, your approach to trading will be somewhat different from the very conservative personality. It is quite possible that, after examining yourself, you may realize that this trading may not be suitable for you.
I wish you Luck Jim.