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First off a little Wall St. joke y'all may have heard before.Want to know an easy way to make a million dollars?Answer: Start with two million!Now that personal computers are within the budget of people around the world,it's possible for millions of people to trade on-line.However many unscrupulous brokerages are taking advantage of the inexperience and naivete of many neophyte traders.Why do a huge percentage of new business start ups (and on-line traders)fold within one or two years or even months?

Reason #1: Inadequate start-up capital.
But why would this be so crucial?Well, the reason is that mistakes cost money,and when you're starting out in any new activity you're bound to be making all kinds of silly mistakes that the 4 or 5 year business veteran has stopped making.

Put simply: Lots of mistakes requires lots of capital (in $'s) to absorb.When you run out of cash, the show is over!

Trading in shares,commodities,bonds & contracts for difference(CF D's) is just another type of business.The advantages provided by on-line trading can be totally squandered if the trader is (a)uncapitalized and (b)inexperienced. By the time you have acquired an adequate level of experience to survive in the markets one may find that all one's initial capital is used up. As in all businesses, daily record keeping and review of same is vital for long term survival.One can't learn anything from one's mistakes if one doesn't document them in the first place.
If you can manage to reduce the number of mistakes from the outset, well then:Bingo! you'll need less capital.This is why it's advisable to get some sort of mentor or training under your belt initially thus sparing yourself the heartache and ignominy of premature failure.
In trading especially, emotional and mental discipline are vital.Two emotions are most associated with financial speculation (by the way: investment is just a fancy way of saying speculation since every investment will be speculative at the outset-nobody knows what the future holds!)
The 2 emotions are: Greed & Fear
Greed:an inordinate desire for gain
Fear:the anticipation of loss
Where is a good place to be on the emotional spectrum to be if one is trading one's own capital?Answer: somewhere in the middle, in a kind of emotional 'neutral zone'.

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