Showing posts with label Undercapitalization. Show all posts
Showing posts with label Undercapitalization. Show all posts

Undercapitalization


„One of the biggest problems we see is trading undercapitalized. Too many traders are in a great hurry to get into the markets and to get rich quick. They have bought the lie that they can make a lot of money starting with a small account.

Although it is possible, it is not realistic. In a hurry to make money trading, most traders begin trading one contract. This is almost a sure way to losing what little capital they have. Everything is riding on a single contract, so the trader is forced to stay in too long or to scalp for only a few pips or ticks.”

Joe Ross in „Conversations with Forex Market Masters”


Most of traders who start their trading adventure hope for high profits, but do not have the equity to stick to a proper money management rules.