Money management is also an important thing to learn in trading. Successful traders don't put more than 1% of their cash into a trade.

What this does is that it allows you to lose on several trades without wiping you out. And when you win, and win big, it wipes out your losses. The thinking is that the longer you are trading, the better chances of having wins. By not wiping out your cash, you stay in the game longer. If you start with bigger positions, it doesn't take too many losses to put a stop to your trades.