#Psychology

Looking at how people manage their personal finances can tell you a lot about them, their approach to life, their mindset and so on. That’s why to be a confident and successful trader, you need to manage your capital skillfully. This will bring you clarity and calmness – two of the things that shape your market performance. So here are a few ways to get back in control of your money:

2. Be sensible about your money

Try not to give in to compulsive buys. Spend sensibly and frugally. If you’ve lived without something for a long time already, it probably means you don’t actually need it that much.

3. Don’t rely on trading profits to pay your bills

This is how you get into debt. Trades can go south and you can’t control that, so you need to have a cushion that will still pay your monthly (mandatory) bills. Better to figure out a regular income (job, side business etc.) to just cover the bills. Fixed expenses require fixed income.