I am very disappointed with 90% of the educational material on the market right now. It took me years to understand this and it's not a pleasant feeling because i realize that the proper knowledge could have been passed to me in a few months and i could have spent the next years perfecting my skills rather then searching for the perfect system or approach for money management or what not. But, hey, lucky i sticked with it and figured everything out myself. However, not many do, lose money, their house, their social life, their pride and self-esteem, and God knows what else... It's really a shame. I come to realize that I was tricked into thinking that my goal, starting with day 1 of trading, was to make money. This is where the trouble starts. You are so focused on making money that you really don't make money, you lose it. An ancient chinese proverb says that "He who thinks about money all day, goes to bed tired". Then, I was tricked into thinking that i need to "Learn How to Make Money in The Markets" (10s of titles like this on the market)... because obviously i didn't know how to make money and i was stupid and needed to learn, from somebody else, right?... Right. A lot of advices there. Among which "KISS" and "Money Management is Key" and overrides the method you are using, then "Psychology" came into play, and I ended up buying book after book because i was getting more and more confused. It's like drug abuse really. It's really like you're trying to catch not two, but three rabbits at the same time. What I came to realize is that the roman "Divide et Impera" is as true in trading as it is in life. However, traders with stars in their eyes will discard the following advice and look to "Make Money". Suit yourselves. ------------------------------------------------- The RIGHT way to approach trading is to split the whole process into 3 phases: 1. Beat the Market (develop a high-expectancy system that you are comfortable with, that you understand, that fits your life style, and not the other way around. Do not mold yourself after a system or approach). 2. Start Making Money using the system you found in Phase 1. 3. Finally focus on Making a Living, after you have proven yourself you are able to make money. ------------------------------------------------- Recognize in which phase you are. If you don't have your system yet, your style, you are still in phase one. Learn about the market, and try beating it. Doesn't matter if you make money or you lose money. Develop confidence, intuition, flair, learn the way your market acts in different circumstances... Only when you are confident about your approach and you are constantly beating the market, you can switch to phase 2. Phase 2 involves being careful and delving deeper into your money management and trade management skills. How do you cut your losses short and let your profits run, of course based on your system's expectancy, etc. When you find the ideal way to approach phase 2, you should be already making money consistently. This doesn't mean you are actually making a living. But you are consistent. The next step is Phase 3, in which you attempt at making a living, once you are consistently making money. This means you have to cover costs, monthly expenses, any goals you have set for yourself, etc. Make a Living. It's not that easy. This is the most complex phase as it involves personal aspects ranging from family, spare time, exercise, habits, etc.... Most of traders never got out of Phase 1 because they are preoccupied with things like money management or trade management and psychology when they shouldn't be thinking about that yet. Those who make it to Phase 2 must be very careful they have a solid foundation from Phase 1 because if they decide to switch approaches, they are back to square 1. Those who finally make it to Phase3 are only now making a living and running a business and need to worry about a whole lot of issues that generally occur in real life. Hope this helps someone.