Hi everyone, please bank your profits-thanks...
Whenever you make a profit on a trade, any trade, take a portion of that trade out of your trading account and transfer it to your savings account, not your checking account. Take at least 5% of your profits, 10% is preferable, and put it in your savings account. The savings account should not be connected with your online or brick-and-mortar trading account. It's always too easy and too tempting to use money in a trading account, especially an online trading account for that next trade or trades. Make it harder to get to your money to force you to think and to have to do more things before you spend your hard-earned profits on that next great trade.
For every buy or sell trade that you make, even a losing trade, put at least 5% of the proceeds of that trade in your savings account. If you are going to spend $1,000 on a trade then tell yourself that you only have $900 to spend on that trade and take out the $100 dollars and put it in your savings account. If you are going to wire transfer $1,000 to your trading account then only transfer $900 to your trading account and put $100 into your savings account. If you trade 200 times a year and put $50 into your savings account for each buy or sell trade then at the end
of one year you wll have saved $5,000 and at the end of ten years you will have saved $50,000. If, you save $100 for each buy and sell trade then at 200 trades X $100 dollars you will have saved $10,000 a year and $100,000 over ten years not counting any interest. :) :) Don't worry about the interest rate, just keep saving your trade-savings money-you'll be very glad that you did in the future when ou need that money.
When you make a good profit, especially a very good profit, shut down your PC and walk away. Don't get an awful desease called trade-itis (my name for it). Don't jump from trade to trade to make that next great killing because you can get financially killed in the process. When you make that great large-profit trade you will feel pumped up and in the process be in the perfect mental state to give back some or all of your profits. The first thing you should do after making that great profit is to put at least 10% of that profit into your savings account. Don't take that banked savings money out to make another great trade, control yourself and leave it there for you and/or your family's future needs.
Never use all or a very large part of your trading account or 401K funds on any trade or investment. Use no more than 10-15% of your investment capital in any trade or investment. If your prospective trade or investment sounds just too good to be true, then that is what it is. Never marry any one investment or trade. Never max-out your credit cards, get more credit cards, or do a re-fi on your house to get funds for any trade or investment because that's the surest way to financial ruin.
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Always have an exit strategy for every trade and/or investment you make before you make that investment or trade. Make sure that you have a target price at which you wish to sell your prospective trade or investment that is a realistic price not a "to the moon price." Plan ahead for your financial needs and think very carefully before you trade or invest about what your needs are and what you plan to do with any profits that you might make. Think twice before any trade or investment and ask youself if you can afford to lose any or all of that prospective investment or trade.
Don't let your investment or investments or trades keep losing until you're left with little or nothing left. Don't use all of your profit money on that next great trade or investment. keep a portion of that profit in your account and keep building the cushion in your account so that you'll have the funds when you need it in the future. To be a good trader you must be highly capitalized in order to keep trading and investing.
Good luck to all.
Bob-C
