We need to understand correctly that the main role of capital management is to help traders limit losses. In order to get a profit, it needs many other factors as well, such as you must have a good method, good trading skills, and a stable mentality. If you have not had these factors or completed these factors, then capital management will only help you to lose more slowly. However, think positively, because thanks to capital management, you have more time to gain experience and hone your skills, right?

However, when your trading style starts to slow down, everything goes into orbit, capital management is now one of the factors that will help you get profitable.

1. Inconsistent capital management

Having a sense of capital management is a good thing, but if it's not properly managed capital, it's also very troublesome. A lot of new traders don't have a specific way to manage their capital and don't really do it consistently. That is each trading order, the same level of risk, same transaction management. That way, consistent results can be obtained in the future.

2. Not patient

This factor is especially important in capital management. Capital management needs a process. This process is for you to perfect the missing things like finding a good method, improving your skills, and learning to stabilize yourself.

So, to see good results in trading, capital management alone is not enough.


3. Uncertainty, expect too much on results

This is also a common occurrence for many new traders when starting to manage capital. Capital management is also a matter of discipline. Many traders do what they just look at the results and ignore the process. This is not suitable for trading. When the results are not satisfactory, traders easily doubt the way or the necessity of capital management.

In fact, we don't have to be that complicated. In fact, we just need to perform well the capital management plan set out to be. If other factors you also focus on and do well, the better trading result is the thing sooner or later in the future.

These are the three most common mistakes in capital management. In fact, how to manage capital is not too complicated or difficult, but mainly due to the trader thinking, thinking, and acting. Know how to focus on doing well and do not expect too much about the results because you may have to practice a lot, the results will gradually get better.