Trading: work or illusion?
Intellectual work of high profile or legalized gambling? This is the dilemma that is the basis of the common judgment on trading activity.
The approach with which you approach the world of finance is the basis for the possibility of success on the field and is not a foregone conclusion.
The availability of installable on pc platforms like video games and the great semplicifazione of the entry to the markets reached also thanks to the broker on the forex, it maybe too simplified an impression of what the trading business.
The first parameter to consider: to obtain large profits should take great risks.
How much money do you plan to do with trading activity? What is this performance in relation to your capital?
To get just 1000 € per month you should achieve a + 12% per annum on a capital of € 100,000.
If it is true that with a leverage 1: 100 you can use a capital of only 1000 € to move that figure, it is also true that the maximum drawdown, which you can afford is 1%.
It is a sufficient margin to ensure profit expected?
There is much to reflect on these issues before moving on to real trading. Study is not enough, you must also have a clear strategy and the objectives set out.
We conclude with a sentence of Richard Ney, maybe too much but that makes good the idea of the wrong approach that generally it starts: “most of us start to career of financial investments for the same reasons a delirious women into prostitution. We delude escape the threat of hard work, you think that is a group activity that does not require much intelligence, and we believe that it is a convenient way to make a fortune when you don’t have special talents for any other field “.
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