Dude, after reading your article, I felt as if you were speaking my own mind. I am completely new to the forum and this subject. To be honest, many things about trading still don't fully sink into my head. I completely agree with what you said about the demo account. I have seen that when I practice in the demo, there is no tension, everything seems to be working fine. But when I think of putting real money in my pocket, a kind of fear works in my heart! It seems like everything is gone. I wanted to know one thing here, that you talked about 'accepting losses' and 'managing risks', how do you actually do this? When you see your real money being lost in front of your eyes, your head is already not right, then how will the previous strategy work? As a newbie, should I set aside something like an emergency fund in advance, so that this fear or mental stress works a little less? How do you, who are experienced, actually handle this fear? If you had explained it in a simpler language, it would have been very helpful for beginners like me.
Okay let’s put it this way. If losing a particular amount of money makes you to panic, then it only means one thing, which is that you’re probably risking more than you can emotionally prepared to lose. The key is starting your trading (when you feel you’re ready to try with real money) with an amount that won’t affect your daily needs in anyway if eventually you lose all the money completely. When we talk about risk management, we are simply talking about deciding how much you’re actually willing to lose before you even enter the market and then secondly be disciplined enough to stick to that limit regardless of the outcome. In trading, your emotions are your biggest enemy, and no matter what, you must try as much as possible to ALWAYS keep your emotions in check, possibly find a kind of anchor that you can always hold on to whenever your emotions wants to get the best of you.