Problematic Myth #2 that we looked at last concerned time, and you can read about it by clicking here

Today’s Problematic Myth #3 is an unspoken myth, yet one in which many traders believe and definitely act on, much to their detriment.

It is an unspoken myth because you’ll rarely hear it talked about and even more rare to hear a trader say it out loud, while at the same time, a very high percentage of traders obviously believe it and you can tell by observing what they do.

Their actions speak louder than their words.

They say that they want to treat their trading as a business, and NOT a hobby.

But have they created a business plan for their trading endeavor?  No.

Have they even really looked at their business from the perspective of a business investor?  No.

Do they employ real money management, even though it is a common trading wisdom that is as important as any other aspect of your trading?  No.

Now for people that have never invested in a business before, or planned, started up and run a business before, I can understand how they don’t see the tremendous importance these formalities have.

I’ve also had some traders confide in me that they just want to do these things but don’t know HOW.

Now creating a real and working business plan for your business is well beyond the scope of this post (as a matter of fact I have an entire training program that walks you through the 7-week process).

And showing you how to analyze a proposal for a business, like business investors do, is also a substantial project.

So what is the Myth and what do these have to do with it?

Well most traders believe that money management consists almost entirely of either position-sizing or stop placement.

And so they wind up NOT applying it to the other areas of their operation where it is needed – and this hurts them substantially without them knowing it.

The truth that they fail to realize is that money management is part of EVERY aspect of your trading, beginning with the decisions you made when you first chose to start a trading business, when you were in the role of business investor.

Money management is at the center of treating your trading as a business and is at the heart of your ability to run a profitable operation.

Now covering the topic of money management in its entirety is rather substantial like the other topics we touched on regarding treating your trading as a business.

But what I can do for you to help you get started developing in the right mindset for treating your trading as a business is to give you a copy of the “What-If Analyzer”.

Click here to access your complimentary copy

You’ll see how it helps you look at your trading from a different angle and gets you thinking in a different way.

The myth that money management is limited to just part of your trading system keeps you from applying to all the areas that to which it truly does pertain.

When you can step back and broaden your view, and then utilize good money management to all the areas where it applies, you’ll find that it benefits you tremendously, both in your confidence but more importantly in your results.

For now, download the What-If Analyzer and have some fun with it!

Next week I’ll show you how you can get past these myths and others to become a truly great trader, one that trades without fear of the market, without anxiety or stress, and one that enjoys rock-solid confidence, security and peace of mind.

Cheers!

Brian