"He who fails to plan, plans to fail"
First of all, a brief note. I probably won't be in the Ventrilo "Market Buzz" Voice Server until Wednesday afternoon ...
This entry, is sort of a follow up to yesterdays entry.
It's OJ again. This was earlier in the day. Icius and Shakamma were in the Market Buzz Ventrilo Server with me as I made this trade. It was a tricky one, but I came out ahead ...
(Video Included. If you're seeing this entry elsewhere and cannot see the Video? Click here to view the entry ...)
Icius, Aummadour and I had a really good conversation today on the discipline that it takes to be in the low funded position, and as I mentioned at the end of that video; why it's so important to add funds to a tiny account.
It provides a secondary stream to your trading equity for the low funded. Cash flow. Thus, your mindset doesn't turn to "I must trade and win, because that's the only way that account will grow." You know that equity will be added to your account, and you learn to balance trading, against that income of equity.
Trading is psychological. The trick is to learn how to ease the psychological burden upon yourself. Especially if you're in the low funded position.
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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.