[caption id="attachment_2402" align="alignright" width="150" caption="Photo by The urban snapper"][/caption]
Today, I finally took action and made a step out of my comfort zone.
I think it started from my trading goals (guess by now some of you know about my trading goals for 2010). And this is why we must set goals. At first, we may not have a clue on how to achieve our goals. But along the way, we tend to see possibilities that we previously failed to recognise and begin to make adjustments. If you asked me, I did not know how to achieve my trading goals but I want to attain them.
Recently, T3B organised the annual gathering for 2010 where Keane shared his insights on the markets in 2010. I had a brief moment of enlightenment when Keane commented on people having not enough capital for trading. It kind of hit the bull’s eye of my current obstacle to my trading goals which I did not see as a real problem. Trading a large capital in turn requires stronger psychology when it comes to handling wins and losses, as well as money management. Initially I thought that by cultivating and having good trading skills, it would help me gain bigger profits and meet my goals. It was until the issue on capital that created the paradigm shift in my perception. The key to bigger profits is to have a sizeable capital and strong psychology. Read more...
Capital is the key to profitable businesses including trading and investing. Larger capital always provide better cushion against temporary setback and allows you to review your own strategies and tactics to get back in line
I totally agree. A large capital gives you more flexibility, for without one, we will be at a slight disadvantage.
For example, I am already fully vested in the market and a recession is a good time to invest in undervalued stocks but how do I get the cash unless I sell my existing stocks at undervalued prices too.
Thanks guys! Great to have your support!
I have realised it takes more than skills to be profitable in the market. Capital is definitely crucial. The critical mass!