Trading is like most other businesses. Based on statistics, 90 /cent of new businesses fail in the first year or two. There are three basic reasons for this. First is under-capitalization, the second is lack of a reliable business planning, and third is lack of management. Any of the above factors can cause a business to fail, but still there are many people who try to fulfill

their dreams of owning their own business. Interestingly, the same statistic and rules apply to the trading industry. A trader may fail for lacking one or more of the same elements such as being under-capitalized, not having a proven trading method and money management, and lack of discipline or management to implement the plan correctly.With todayCs technology, it is easier than ever before to go through the proper steps and stages to develop and master a

trading plan and to implement that plan with no initial capital risk exposure in order to make sure that the method and the plan works well. After mastering your method and adapting it

to fit your personality and financial status, you can test it in simulated trading to find out how viable your trading method is without risking real money. This no-risk trial proves that your business plan is good and effective. I always urge every one to achieve a total of 15 consecutive days of trading success before they begin trading with real money. As most

traders will attest, that’s almost impossible without a very powerful and accurate trading method plus a very good personal mastery of that method. So, more is involved than just

having a good plan to achieve the success that the trader desires.

The next step, assuming that the trader is not under-capitalized, is the correct management (or implementation) of that plan. This step will probably be the most challenging part because it involves putting actual risk capital in your trades. The training wheels are off. We have learned that the best way to make a smooth transition from simulation to the .real deal. stage is to begin trading with a small amount of money, perhaps as little as one contract. The least amount of money will bring the least amount of human factors (emotions) in the picture. There will be time for fear, greed and uncertainty later. After proving that the method works in simulation, followed by small money trading, everything should become second nature

to the trader as confidence grows and skills are honed. Patience, discipline and focus take control and the trader transforms into a fearless warrior with an unbeatable arsenal of trading

weapons. Then by increasing the trading size by adding more contracts (based on what money management dictates), the trader enjoys the fruits of their learning labor, and the rewards go even beyond the financial.

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