If You Don't Spend Much . . . You Can't Lose Much

One of the biggest mistakes you can make as a trader is have too much money riding on a trade. The more money you use, the more emotional fuel you are pouring into the fire. Eventually, you are likely to be burned – badly. The post-traumatic stress may be irreparable.
Most beginning traders stake too much in the hope of a quick win. Experienced traders know better. In day trading, where the trades can come quick and fast, a few big losers can eat you alive very quickly. Good day traders who survive will risk only a tiny amount of their trading capital on any one trade. If you are under capitalized then considering using a trading system, which offers a tight stop loss. Alternatively, trade a shorter time frame, like the 1-minute chart, where losses can be minimized. Overconfidence is the other cause of excessive risk. Hey. . heads has come up 10 times in a row . . let’s put half the trading capital on tails (which is sure to come up next) and clean up.
The problem with sure thing trades is that:
#1 The market hardly ever obliges
#2 Everyone else sees them as sure thing as well and jumps on board. So when they go wrong, they go wrong big time. Risk a tiny amount on each trade. You’ll be more relaxed, and more able to execute the trade properly.