Successful trading is not about how much you make, or whether you are able to beat your last record. It is not about how many contracts you trade or the size of your trading account. It is about getting it right, getting you to follow a simple trading plan, sticking to the rules that you have laid down earlier, its all about discipline.

Remember, the more money you have in your trading account, the more likely is the chance for you to sabotage yourself and lose it all especially when you get upset on losing trades. It is only human nature to be right but be careful as your ego may step in and your emotions will start to take control. You’ll get angry and want to take revenge on the markets. On most occasions, revenge trading is never sweet and there is going to be more blood.

You must realize that the market doesn’t know you and will not care whether you win or you lose. But it will not hesitate to take your money if you are reckless and sloppy in selecting your trades. You will begin to look for trades that will give you unrealistic profits and make stupid mistakes just because you want to win back your money fast.

You’ll have high expectation on your trades and will want them to work out. In fact, you may be even trying harder to find your next jackpot trade. By doing so you are just setting up for a greater fall and bleed more money. You are not going to have a peace of mind. This can be very dangerous to a trader as it could lead to a series of heavy losses. You may want to give up and stop trading.

The only way to avoid this from happening is to have a well define trading system for selecting your stock and trade. Proper money and risk management should be incorporated into your trading plan so as to act as a guide for your risk to take. This way you will not take it personal when you lose in a particular trade.

“Risk is good. Not properly managing your risk is a dangerous leap” - Evel Knievel

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