| Trading is a risky business. It is also the only business | | | | trader can cut his or her teeth in this business is by |
| that lets you invest a very small amount of money | | | | trading a small real money account. That is what is |
| to get started as compared to most other | | | | called Risk Capital in the business. A trader must only |
| businesses out there. It might also possibly be the | | | | trade with money he or she can afford to lose. They |
| only kind of business that does not require a lot of | | | | must never trade with money that they might need |
| time commitment, employees and all other sorts of | | | | for their living needs or have saved for some other |
| typical overheads associated with any other kind of | | | | purpose such as retirement or college. They should |
| business. It is a very lucrative business that draws | | | | never trade with borrowed money either such as |
| people from all walks of life towards it. Yet it is a | | | | from a credit card or a friend or relative. That is |
| true but sad fact that only ten or so percent of | | | | what is called Scared Money in the trading world. |
| people that are drawn to trading finally make it in the | | | | It is also not advisable to trade on a trading simulator. |
| business and move on to become professional | | | | A trading simulator, offered by many brokers out |
| traders. | | | | there today, just cultivates bad habits. Trading on a |
| It all starts with the lure of easy money. People from | | | | simulator will not condition a trader mentally as it is |
| outside the trading world think it to be very easy. | | | | play money they are trading with and they can |
| That is because anyone with a few dollars and an | | | | afford to lose an unlimited amount of money. By |
| internet connection can open an online trading | | | | trading a small size with real money enables the |
| account and start trading like the professional traders. | | | | trader to build his mental edge. Using real money will |
| That is so far from the truth. There is a lot more | | | | help the trader be more cautious with his trading |
| than just pulling the trigger. After all even a two year | | | | approach and only take trades that have met his |
| old can click on a Buy or Sell button and make a | | | | rules. This way they will prepare themselves mentally |
| trade. The outcome is anyone's guess. Trading is a | | | | for some inevitable losses that always come in any |
| psychological game where only the tough survive. | | | | business. They will also be able to trade more |
| That is why it is so important to start off trading on | | | | confidently as they will see real money added to their |
| the right foot. | | | | account too in the form of profits. Starting with a |
| A trader must start trading with real money. There | | | | small real money account helps build a strong trading |
| are no other ways around this. The only way a | | | | profession for the future. |