Dr. Sean began his career as a medical physician until a chance conversation with the nephew of a fellow physician led to his discovery of the kind of profits that can be made trading in the stock mark.
Sean Seshadri - Controlling risk in 2012
An Image/Link below is provided (as is) to download presentation
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Most people will take on too much risk when they start to trade because they have never been taught correct portfolio management and what markets to trade based on their current financial status. This is just one of the reasons why people fail among discipline and not having inherent instincts which can be learned over time.
There are day trading limits that one should be concerned with first. For example, one needs to have over 25k to day trade stocks or options multiple times intraday. One should focus on how much they are willing to risk on an individual trade.
You can risk 10 cents on a forex trade or 1,000 dollars. When someone starts they should first practice on a virtual account before they feel comfortable using the brokers platform. Then they can slowly practice risking a smaller amount per trade.
With this said people being people will still do the exact opposite and still fail as emotion is a big factor in trading and limits people from being successful. That is the reason should follow these rules so they can avoid frustration and can see if trading can work for them.