Index Trading or Options Trading one should be prepared to make losses. Even in non-directional options strategy, there is a probability that you make a loss. Trading is risky and loss is inevitable.
Full-time Traders & Professional traders are trained to take 10 losses in a row. If you are looking to be a professional trader or full-time trader and you are not ready to take 10 losses in a row then something is really wrong. The majority of people go bankrupt or lose their entire money in just 5 to 6 traders. This is because they follow a very very poor money and risk management.
“The Holy Grail of Trading: It’s not your System”
– Chris Perruna
System never give you return. We spend most of our time in finding the right system for trading. It cannot be completely ignored but its not the holy grail.
So what works in the market really is position sizing.
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