Quote:
Originally Posted by Colin  Preserving your capital will be a prime criteria when you a successful trader, so why would you want to act any way different when you are learning to become one? |
I tend to agree that the "plan to lose your first account" adage is bogus. I never lost mine.
In fact, if you look at all the traders interviewed in the
StockTickr interview series, you'll see one of the questions is always about whether they lost their shirt early on in their trading. I think in 95% to 100% of those interviews, they never destroyed their accounts. In the excellent Market Wizards series of books, I can only remember one interview off-hand where the trader lost everything before succeeding.
So, I tend to think the successfull traders are the ones that "get" the capital preservation idea early on.