Live action

After you get confident in your strategy, this is the time for live action. Now you’re putting real money at stake.

Figure 7.8 – You, after a year of successful trades

Besides the lessons already learned about risk management, there is another safety tip I can give you. You can start by putting a smaller amount, let’s say $15, when you enter the trade and continuously increase that sum up until your fixed risk percentage (1.5%-2% of your capital).

Live action will bring up emotions that you didn’t have during testing. Emotions of thrill and euphoria, panic, and addiction. You need to manage them while also staying on course and following your trading plan.

First, I recommend you go through all of these steps as I’ve shown them to you. Always backtest for at least 100 trades in each market, always forward-test for 100 trades, and then paper-trade for at least a month. After you develop three strategies...