Barriers to successful trading
Why do you sell? You fully understand your goals as a trader? Trading is like golf. There are a huge number of golfers who enjoy the game, but they will never make it to life. They have made contributions to the club, pay for the rental of trucks, equipment, literature, counseling and so forth. Venture to suggest that the majority of these golfers have no intention of ever earning money playing golf, and they know it. They know why they are involved in the game. The few that will make the game of golf to life, day by day and spend their technique to correct the error. They agree to pay a price for success.
What about traders? This is the belief that 85-90% of traders lose money in any given year. All traders have costs such as purchase of equipment or rental, subscriptions to directories and analytical reviews, seminars and consultations, and so on. Unlike golfers, most traders is the intention of making money through trade, even though they do not exactly know how they are going to do it. They do not work correctly on every day. They are looking for something lighter. Often they do not have a clear understanding of their motivation for trading.
Some loss-making styles of Trade
Suicidal type of trade is to try to confront the market. Traders of this type sell in growing markets, only to see further upward movement of the market. In the next point (in their reasoning) should be even better to sell than in the first position. Eventually, they sell for a higher price. And of course they love to buy on the market, which is down. And the next day, when prices are even lower, they think that the next deal even better. They always think they see light at the end of the tunnel. The only problem is that this light is on the other side.
Eyforistichesky type of trade, in which there is no plan for fixing the profit on the trade account. Here comes the hot band, and each subsequent transaction is more than the previous one, since all profits capitalized directly into the market, while the loss does not increase to unacceptable proportions. Not only that such a trader loses all profit, it will often account reset, and possibly even beyond that.
Your profile trade
Why do you sell? What are your goals as a trader? What are your strengths? What are your weaknesses? How you fixed? What is your courage?
If you do not have a satisfactory answer to any of these questions, then now is the time to work on this. There is obviously the right answer to any of these questions. There are only your answers. However, if you're honest with themselves, then you will not have a bitter disappointment in the market.
Know your market
All markets have their own individuality. There is important news, which may lead to unexpected volatility, but there are periods of stagnation. The more you know about the market, which sell, the more advantage you have to trade.
Identify and develop your style of trading
Is it true that you have a mechanical style of trading? Do you have time to study, desire, persistence and control of emotions? If you are experiencing lack in any of these characteristics, perhaps you should consider a mechanical approach to trading.
The successful mechanical trader will:
1.Priznat the fact that a mechanical way to trade is a compromise between the aim to exclude the most waning deal and save the best deal. This fact is related to the fact that from time to time, trade will be accompanied by not only good, but failed transactions.
2.Prinyat the fact that the mechanical method of trade can only be successful if it consistently observe.
Are you intuitive trader? Do you have time, desire, persistence and control of emotions? If you have all these characteristics, then develop your style of trading, providing "The Art of Commerce". (this is definitely an amazing way for the trader - make money "market sense")
The successful intuitive trader will:
1.Torgovat based on what he sees, not what he thinks.
2.Byt patient to wait for good opportunities for trade and only a bargain.
3.Vozderzhivatsya of marginal deals.
4.Ne trade only for excitation.
5.Delat daily homework necessary to hone their trading skills.
Features of a successful trader
"Adequate capital - without this nothing else is irrelevant.
"Courage
"Patience
"Continuity
"Self -
Ten Rules of successful trade
1. Take some trading plan.
Because of the emotional tension that is inherent in any speculative situation, you should have a preliminary outline of action, which includes a set of rules for which you are working and which adhere to, thus protecting you from your emotions. Very often, your emotions push you to do something totally inconsistent or contrary to what lies in your trading plan. Only by adhering to a preliminary "formula, you can resist the emotional temptations and stresses, a constant presence in speculative situation.
2. No deal, if you're not sure.
If you have a position open and you feel unsure, take your loss or protect your profit stop order. If you are unsure of the position, you will be influenced by various foreign and minor details and you're likely to exit from it with losses.
3. You should be able to, even if the right in 40% of their transactions will still make a profit.
When speculative trade, it would be unreasonable to expect that you will appear right every time. Trader with the appropriate methods of trade should thus reduce their losses and make profits grow, so that even being right less than half the transactions, it is still a good profit. This time more carefully considered in the fourth rule.
4. Reduce your losses and let your profits grow.
The main mistake most traders is that they limit their profits and does not limit the losses. The man is a very unpleasant feeling, recognizing that it is wrong. Therefore, the trader will often allow its losses grow, becoming more and more, in the hope that, ultimately, the market spread, and proves its correctness. Then after a while, he begins to hope for a reduction in losses and leaving the hope for profit. Also, because of his human nature, a trader wants to take profits immediately, and thus be right. There is an old saying - "You will never bust, taking a small profit." But you will certainly not rich by following this principle. To be satisfied with small profits - this is the wrong mental attitude to make money on speculation. If you were right at the entrance of the position, you almost immediately know about it and see a quick profit. However, if you're wrong, you will see a loss and you must quickly get out of position. The adoption of a small loss does not necessarily imply that you were wrong in their findings. It simply means that you may chose the wrong time and that you should wait for a situation that will allow you to re-enter the market. Remember, in any speculative situation, the market is the final judge. Trader should let the market tell him when he is right, and when not. If you see a profit, then let it grow until the market does not spread and will not tell you that you are wrong, then you should quit, but not before that! On the other hand, if the market tells you that you are wrong, it would be a grave mistake to argue with him.
5. If you can not afford to lose, then you can not afford to win.
As noted in the fourth rule, the losses are a natural part of trading. If you do not have the ability to take losses, either psychologically or financially, then you can not have any trade. In addition, the trade should be conducted only with the use of excess money, which are not essential for daily expenses.
6. Not traded on too many markets.
Difficult to successfully sell and understand a certain market. For the trader, especially a newcomer, are almost impossible to successfully trade on several markets at the same time. Individual trader is simply not able to cover the fundamental, technical and psychological information necessary to successfully trade on a large number of markets.
7. Not traded on the market too thin.
Lack of liquidity in the market make difficult, if not impossible, to eliminate the position on the price at which you want to.
8. Be aware of the trend. - Trend - your friend "
For the trader is vitally important to know about who prevail in the market, the bulls or bears. When they are in force, it would be folly to try to confront them. However, you must learn to recognize when the trend should be on its way, and when depleted. The ability to recognize early signs of depletion of the trader will protect himself from staying on the market too long and will be able to replace the position when the trend changes.
9. Do not try to buy at the bottom or sell at the top.
This simply can not be done if you do not have a magic crystal or some other tool that has a mystical power. Be patient, to await the development trend and then use it to their advantage.
10. Do not become a hostage position.
A separate loss is difficult to accept. However, this loss to be taken so that depend on it - is an obvious absurdity. You must retain control over them. Do not allow your position to control you. This is a serious mistake to be in better position than the one which you can reasonably manage. When this happens, you understand that the size of the position rather than the situation in the market affects your reasoning.
The refusal to accept the loss - one of the most obvious reasons for the failure in the trading game. It usually starts with a lack of specific points of entry after the transaction. Ask yourself: "Where and when I went out, and if I'm wrong?"
Why do you sell? You fully understand your goals as a trader? Trading is like golf. There are a huge number of golfers who enjoy the game, but they will never make it to life. They have made contributions to the club, pay for the rental of trucks, equipment, literature, counseling and so forth. Venture to suggest that the majority of these golfers have no intention of ever earning money playing golf, and they know it. They know why they are involved in the game. The few that will make the game of golf to life, day by day and spend their technique to correct the error. They agree to pay a price for success.
What about traders? This is the belief that 85-90% of traders lose money in any given year. All traders have costs such as purchase of equipment or rental, subscriptions to directories and analytical reviews, seminars and consultations, and so on. Unlike golfers, most traders is the intention of making money through trade, even though they do not exactly know how they are going to do it. They do not work correctly on every day. They are looking for something lighter. Often they do not have a clear understanding of their motivation for trading.
Some loss-making styles of Trade
Suicidal type of trade is to try to confront the market. Traders of this type sell in growing markets, only to see further upward movement of the market. In the next point (in their reasoning) should be even better to sell than in the first position. Eventually, they sell for a higher price. And of course they love to buy on the market, which is down. And the next day, when prices are even lower, they think that the next deal even better. They always think they see light at the end of the tunnel. The only problem is that this light is on the other side.
Eyforistichesky type of trade, in which there is no plan for fixing the profit on the trade account. Here comes the hot band, and each subsequent transaction is more than the previous one, since all profits capitalized directly into the market, while the loss does not increase to unacceptable proportions. Not only that such a trader loses all profit, it will often account reset, and possibly even beyond that.
Your profile trade
Why do you sell? What are your goals as a trader? What are your strengths? What are your weaknesses? How you fixed? What is your courage?
If you do not have a satisfactory answer to any of these questions, then now is the time to work on this. There is obviously the right answer to any of these questions. There are only your answers. However, if you're honest with themselves, then you will not have a bitter disappointment in the market.
Know your market
All markets have their own individuality. There is important news, which may lead to unexpected volatility, but there are periods of stagnation. The more you know about the market, which sell, the more advantage you have to trade.
Identify and develop your style of trading
Is it true that you have a mechanical style of trading? Do you have time to study, desire, persistence and control of emotions? If you are experiencing lack in any of these characteristics, perhaps you should consider a mechanical approach to trading.
The successful mechanical trader will:
1.Priznat the fact that a mechanical way to trade is a compromise between the aim to exclude the most waning deal and save the best deal. This fact is related to the fact that from time to time, trade will be accompanied by not only good, but failed transactions.
2.Prinyat the fact that the mechanical method of trade can only be successful if it consistently observe.
Are you intuitive trader? Do you have time, desire, persistence and control of emotions? If you have all these characteristics, then develop your style of trading, providing "The Art of Commerce". (this is definitely an amazing way for the trader - make money "market sense")
The successful intuitive trader will:
1.Torgovat based on what he sees, not what he thinks.
2.Byt patient to wait for good opportunities for trade and only a bargain.
3.Vozderzhivatsya of marginal deals.
4.Ne trade only for excitation.
5.Delat daily homework necessary to hone their trading skills.
Features of a successful trader
"Adequate capital - without this nothing else is irrelevant.
"Courage
"Patience
"Continuity
"Self -
Ten Rules of successful trade
1. Take some trading plan.
Because of the emotional tension that is inherent in any speculative situation, you should have a preliminary outline of action, which includes a set of rules for which you are working and which adhere to, thus protecting you from your emotions. Very often, your emotions push you to do something totally inconsistent or contrary to what lies in your trading plan. Only by adhering to a preliminary "formula, you can resist the emotional temptations and stresses, a constant presence in speculative situation.
2. No deal, if you're not sure.
If you have a position open and you feel unsure, take your loss or protect your profit stop order. If you are unsure of the position, you will be influenced by various foreign and minor details and you're likely to exit from it with losses.
3. You should be able to, even if the right in 40% of their transactions will still make a profit.
When speculative trade, it would be unreasonable to expect that you will appear right every time. Trader with the appropriate methods of trade should thus reduce their losses and make profits grow, so that even being right less than half the transactions, it is still a good profit. This time more carefully considered in the fourth rule.
4. Reduce your losses and let your profits grow.
The main mistake most traders is that they limit their profits and does not limit the losses. The man is a very unpleasant feeling, recognizing that it is wrong. Therefore, the trader will often allow its losses grow, becoming more and more, in the hope that, ultimately, the market spread, and proves its correctness. Then after a while, he begins to hope for a reduction in losses and leaving the hope for profit. Also, because of his human nature, a trader wants to take profits immediately, and thus be right. There is an old saying - "You will never bust, taking a small profit." But you will certainly not rich by following this principle. To be satisfied with small profits - this is the wrong mental attitude to make money on speculation. If you were right at the entrance of the position, you almost immediately know about it and see a quick profit. However, if you're wrong, you will see a loss and you must quickly get out of position. The adoption of a small loss does not necessarily imply that you were wrong in their findings. It simply means that you may chose the wrong time and that you should wait for a situation that will allow you to re-enter the market. Remember, in any speculative situation, the market is the final judge. Trader should let the market tell him when he is right, and when not. If you see a profit, then let it grow until the market does not spread and will not tell you that you are wrong, then you should quit, but not before that! On the other hand, if the market tells you that you are wrong, it would be a grave mistake to argue with him.
5. If you can not afford to lose, then you can not afford to win.
As noted in the fourth rule, the losses are a natural part of trading. If you do not have the ability to take losses, either psychologically or financially, then you can not have any trade. In addition, the trade should be conducted only with the use of excess money, which are not essential for daily expenses.
6. Not traded on too many markets.
Difficult to successfully sell and understand a certain market. For the trader, especially a newcomer, are almost impossible to successfully trade on several markets at the same time. Individual trader is simply not able to cover the fundamental, technical and psychological information necessary to successfully trade on a large number of markets.
7. Not traded on the market too thin.
Lack of liquidity in the market make difficult, if not impossible, to eliminate the position on the price at which you want to.
8. Be aware of the trend. - Trend - your friend "
For the trader is vitally important to know about who prevail in the market, the bulls or bears. When they are in force, it would be folly to try to confront them. However, you must learn to recognize when the trend should be on its way, and when depleted. The ability to recognize early signs of depletion of the trader will protect himself from staying on the market too long and will be able to replace the position when the trend changes.
9. Do not try to buy at the bottom or sell at the top.
This simply can not be done if you do not have a magic crystal or some other tool that has a mystical power. Be patient, to await the development trend and then use it to their advantage.
10. Do not become a hostage position.
A separate loss is difficult to accept. However, this loss to be taken so that depend on it - is an obvious absurdity. You must retain control over them. Do not allow your position to control you. This is a serious mistake to be in better position than the one which you can reasonably manage. When this happens, you understand that the size of the position rather than the situation in the market affects your reasoning.
based on spstrategist.com
No comments:
Post a Comment