Having good analysis is just part of the puzzle as I can assure you
that if you have good analysis coupled with bad money
management, you will not do well in trading.
I say this because I personally witnessed it myself in the past. There
are many reasons to this and I will give you one here.
Example, you win a little when you win (as you are too eager to get
out of the market when you win). You lose a lot more when you
lose (as you are willing to wait for it to turn into profit).
In other words, you can be good in your analysis and you can still
be losing consistently to the markets.
Unless you have a solid money management plan. You are almost
certain to double, triple or quadruple your capital with a solid
money management plan coupled with good analysis method.
A very important part of money management is having a good
trading plan (game plan).
that if you have good analysis coupled with bad money
management, you will not do well in trading.
I say this because I personally witnessed it myself in the past. There
are many reasons to this and I will give you one here.
Example, you win a little when you win (as you are too eager to get
out of the market when you win). You lose a lot more when you
lose (as you are willing to wait for it to turn into profit).
In other words, you can be good in your analysis and you can still
be losing consistently to the markets.
Unless you have a solid money management plan. You are almost
certain to double, triple or quadruple your capital with a solid
money management plan coupled with good analysis method.
A very important part of money management is having a good
trading plan (game plan).