Psychology

The number one reason that 90% of traders fail is due to psychology. I've been trading for a while, but I'm still struggling with it every single day.

The biggest one I have is the soybeans-meal spread. I was going thru a significant drawdown and now it came back up. As a matter of fact, I'm making some money, more than my monthly pay-check from a computer engineer job, but the problem it's still far less than the amount I risked. We all have invested or traded in one form or another and said to ourselves, 'if this thing comes back to break-even, I'll just get out and I'll never invest/trade.' That's the exact situation I'm in.

If I get out now, the reward-risk ratio would be 1:7. (Risking $7 to make $1, which is not right!) In order to survive in trading, I need at least 1:1 ratio. But man, my target is still so far a way. I don't know if I can fight for it or not.