Thread by @richlife100x

Focus on longevity of your business while investing.

Same way focus on longevity when trading is your business.

Read this thread if you want to become full time trader and increase your longevity in the business of trading

Here you go

First you should consider trading as any other business and evaluate it as one

When anyone starts a business he/she first has learned, gathers knowledge and understanding to run the same. So learn about your business

Find out different methods to run the business

Choose a method which you think will suit your personality.

Start small, do the actual work and evaluate. Trade small and follow the rules.

Have a Mentor to help you with your journey. As some problems he/she might have faced and can help overcome with ease.

If after some time you think this is not for you, move to some other method. Here discuss your emotions and issues with Mentor. Can really help.

Once decided which path to take the real grind begins.

At this point you can increase your capital a bit but dont go all in yet

You need to make sure over of period of time with different market conditions you are able to survive with your chosen method.

As you gain confidence add incremental capital.

In this learning phase, trading should not be your primary source of income

You should decide to go full time if and only if you have a large corpus and you are profitable consistently over 3-5 years with good corrections in market.

Large corpus could be generically defined as something which even if generates 8-10% is greater than your income from non trading activities

To Summarize so far:-
1. Learn
2. Start small
3. Have Mentor
4. Chose 1 Method which suits you
5. Be consistent and improve
6. Sizable corpus

If you want take the plunge as full time

On longevity need to invert on how you can blow your account

1. Borrowed Money
2. Leverage
3. Large Losses
4. High Allocation to single stock
5. Averaging Down
6. Not sticking to chosen Method or Plan

So from above you know what you need to do at basic level to increase your longevity in Trading buss

1. Avoid Borrowed Money
2. No Leverage until you have mastered your art and are profitable consistently
3. Avoid Large Losses. As simple rule you can have hard stop loss at 10%

4. Restrict your allocation to single position to 10% as simple rule to start with.

5. Avoid averaging down

6. Always stick to your process and plan.
Evaluate and realign

7. Work on a certain % of your capital if full time

Doing this few basic steps will help you a lot. As you go along you can improvise and build your own trading rules and plan.

More on that will follow in upcoming threads

If you reached so far, hope you liked the thread.
If so like and retweet.

Link to first tweet for like and retweet

https://twitter.com/richlife100x/status/1437636769520914434?s=20