CAPITAL MANAGEMENT WITH THINKING MANAGEMENT


Many traders are afraid to discuss their thoughts when they make mistakes in trading. For example, they just blame the system for not giving a sell signal or the candlestick pattern not working in a certain way. However, all are ridiculous!

The battle that all traders face is a battle of hesitation in their mind when they are faced with a scenario they are not comfortable with.

If you make a decision based on the emotional imbalance that develops in your mind, you will constantly jump from system to system trying to find the next best thing.

So how do traders overcome this?

Money management can only be used successfully with the right mindset.

It all comes from a point of view. Do you want to learn how the market works? Do you want to trade for the sake of impressing your friends? Whatever the reason, you will end up going through tough times in your trading journey.


If you don't have goals for yourself, the journey will be very short. If you really want to be a trader then you have to be prepared to accept both the good and the bad.

There are many capital management techniques, some are simple, some are complex, but the only capital management technique that takes precedence over any other technique is "SURVIVAL".

Your goal as a trader is to protect your capital. You are the bodyguard for your capital. That is your capital management technique. Managing your thinking involves reaffirming to yourself the importance of capital protection. Your "thinking" will allow you to act in accordance with your capital management goals. That is EXISTING.

So, if you are a new trader, focus on developing your thinking by constantly reminding yourself to protect your capital. Also, do not be too obsessive to protect your capital by not trading!


Once you focus on protecting your capital, you will eventually develop habits and effective action to ensure that your decisions are in line with your overall goal - SAFETY OF CAPITAL!