If you want to be a better trader, one of the first things that you need is a financial safety net. A financial safety net will allow you to be less anxious when you are trading and will allow you to sleep better at night. It will allow you to take your time to develop as a trader, if you are beginner, by allowing you to not focus on having every trade be a winner. If you are trading with scared money, you will make bad decisions and ultimately you will wipe out your trading account.
Your financial safety net should be comprised of the following components: