Avoid careless expenditure by investing your profits after a successful trade, this will ensure you a long and safe investment for the future.
It is so easy to spend money in a split second then realize that you’ve spent all of your profits, after the cause. After a lucrative month of trading, my friend had incurred a profit of over a R100 000, however, his mistake was failure to invest some of the money. This saw him recklessly spending the money on frivolous things, which rendered him broke as quickly as he had made the money.
Once you’ve reached your target, it is important to close your pairs and withdraw all the profit you made.
We were both into trading- but his skills were quite advanced than mine. Earlier in the year, he made approximately R150 000 but because of the company he kept and not investing some of his money, he made a loss. When it comes to trading, ‘greed’ becomes your ultimate enemy, and it is important to bear in mind that currency pairs in trading change direction from time to time. This means that you can’t be comfortable in one place in anticipation that your last pair of trade will do you justice.
I witnessed my friend lose money due to not sticking to his trading plan. He also took the sum of money he made and spent it on his friends.