The second thing that I have for you is to…
If you have $50,000 to speculate in the markets…
My suggestion is to not risk that whole $50,000.
There are many brokers already out there that’s letting you buy 1 or 2 shares (beyond the usual minimum board lot) and lets you trade commission free!
So you can start small like $10,000 or even just $5000 at the moment.
Because as a starting trader, you’ll make a ton of mistakes.
So start really small and make as many mistakes as possible which is totally fine.
Why do you want to you know pay for example $10,000 for a painful trading lesson when you can actually learn that same lesson for a $300 or $400 account?
So start small so your tuition fees are kept small as well.
Later on, you can scale up your account when you're confident and when you're ready.
Risk Management First
As you start in your training journey, you will be overwhelmed.
I’d be lying to you if I say that trading is simple.
You will be overwhelmed.
There is a lot of information out there and you’ll probably hop from one trading system to the next.
Maybe you have already tried swing trading, position trading, mean reversion trading, trend-following, momentum and so on.
But the one thing that you must not neglect is your risk management.
If you think about this right…
If you have proper risk management in place and no matter what trading strategies you trade…
Even if flops or fails, you will not blow up your trading account.
Because each trade that you risk is only 1% or smaller, it’s not something that would destroy you.
So feel free to explore other methods but never ever forget your risk management.
The last thing on the share is…
Look at what the index is doing
For example, if you are trading stocks in the S&P 500…
Then it would make sense to track what is the trend on the S&P 500 to kind of to serve as a trend filter for to know whether you should be buying or you should be staying in cash.
If the stock index is in an uptrend, chances are stocks will be in an uptrend.
If the stock index is in a downtrend or is in a recession, more often than not, more stocks will be in a downtrend.
One way to improve your trading is to trade along the path of least resistance.
One tip that I have for you is…