MONEY
It takes money to make money. Initially, you need money to lay the foundation for your trading business. This initial need comes in the form of money for education, for research, and for development of a methodology. Then, you need money to maintain and operate your trading business. Finally, you need money for inventory to allow you to take the risks that are necessary to earn more money. The more money you have, the less you should have to risk.
Overall, most businesses fail because they are undercapitalized. Too many traders go into the business of trading undercapitalized because they fail to follow the universal business rules regarding adequate capitalization. A wise strategy is to salt away trading capital while educating yourself. This strategy will give you a running start when you are ready to trade.
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