Hey steemittraders and friends
In the last episode of tc100 PREP #1 we checked the conditions and what we have.
We realized a few problems and summarized our odds.
In this Episode I want to make clear what we need!
LUCK
This might sound silly for some of you because trading is not gambling but especially in the beginning we need luck. Évery trade we place is just a bet with a chance to win or lose.
And not every trade is going to win. Thats just normal business. So imagine 5 losses in a row- wich is not uncertain and boom we are down 25% ( if we would chose a max loss of 5€ per trade)
So it is very important to only use A Level setups! We need a high win rate and get forward nice and steady.Nevertheless chances of blowing up the whole account are pretty high. This is something you should be aware of.DISCIPLINE
This is one of the most important things in trading. You have to be disciplined! Stick to your strategy and your rules. Close trades quickly if your rules do say so. Dont be to greedy.Dont be to fearfulf. Stick to your strategy and respect your money management!
- TIME
As we found out in the last Episode 100€ is not much. And 10% profit is just 10€ but as time goes by an the bankroll gets bigger.... profits will be bigger to. For example after you locked the profits of the first example 10% of 110€ are 11€ and so on. Maybe one day we reach 1000€ bankroll and a 10% profit would be 100€ wich is the whole amount we invested in this project in the start. This will take a lot of time. But remeber point number 2. -we stay disciplined and patient and one day it will pay of.
- THE RIGHT BROKER
As we have very difficult conditions in this account we need a broker that offers the right service for us.
We need :
-Low Fees
-Many tradeble markets, like stocks, idices,forex,commodities
-And most important:
LEVERAGE
this is very nessessary if you trade with such a small account.
Leverage means. The broker offers money on top of our account money. So we have more buying power. For example Leverage 1:5 would give us 500€ of buying power. So we could buy more shares and get higher profits. On the other hand losses get bigger as well. For example i buy 1 share of company X for 100€ without leverage and the stock goes down 2% - i lost 2 €
but if i buy with leverage 5 shares of that company and it goes down 2% i lost 10€(2€x5)
or in relation to my account balance 10%--- so keep in mind leverage can work for you but it can also work against you. So always check your max losses before placing the trade.
So this are the points wich i think WE need to be successful in this challenge.
Do you have something to add? Do you have any questions? Please let me know in the comments section below.
If you like my post please UPVOTE, RESTEEM and FOLLOW for more.
I would be really happy if we could build a nice trading community together.
For the Ones of you who missed the first episode of 100€ Trading Challenge PREP :
Thanks for reading. Use the tag tc100.
Best wishes steemitstocks.