Even to be a winner in any other
form of investment, you are as a trader must put each of the critical factors
in perspective. Although the market is dynamic in nature, but it is important
for the trader to have some rules governing his trade. This is done through the
installation of certain aspects of trade and, therefore, allows you directly to
control your emotions and gives you the opportunity to succeed in your chosen
field of investment. Rest refers to the concepts of risk, entry, stop loss and
profit.
And in the following paragraphs,
I will explain why it is important to use the factors mentioned above, if you
want succeed in business.
Risk: This is an aspect of trade
that does not receive adequate care. Wise for any trader to be aware of the
risks incurred by a separate agreement. Before the opening of a trading center,
the trader will need to know the amount of money he can lose and make sure it
is within the comfort zone and before entering into any transaction. Without
Risk management paperless, traders cannot determine the amount of the expected
profitability of the trading method he used. For example, the trader could
increase the degree of risk substantially during the sessions of the loss or
reduce the level of risk to make profits. There are many different forms of
capital management in the investment world, however, one of the beautiful
models are those that trader requires to risk with a fixed percentage of the
balance of payments to any transaction he opens it. The objective is to
increase profitability through periods of winning and minimize potential losses
facing a period of offers at a loss. This is the model used by the company
failed and it works wonders.
Admission: Based on my experience
over many years, it is my belief that it is important for traders who have a
fixed access point for their transactions. This may seem a bit confusing;
however, this concept is very simple. Anyone who has spent some time in this
area should also be aware that the figures could represent good levels of
support and resistance. These numbers ending in 50 or 00, for example from
1.4200 to 1.4450, and so on. The reason for this is that most large investors
tend to make entry and exit of these figures and what causes the change of
polarization on the market at these price levels. But I must say that all the
even numbers for a good entry level, but when it is close from trends pivot
points up or down, usually they work the best possible levels of entry.
Stop Loss: Before entering into
any transaction, it is important for us to have a stop loss at pre-defined, but
it's better than the stop-loss order is placed during the processing of the
order entry. It does not under any circumstances take the stop-loss level below
the entry point after the transaction is open. If it is necessary to move the
stop loss point must be the point of entry or reverse the current market as a
way to reduce the potential loss. One of the biggest mistakes, which are the
case for many traders, is the idea of loss of mental stop. This means that the
level of stop loss bearing selected, but should not actually put a stop-loss
order, but he says he wants to close the mall manually once the price reaches
this level. In addition, this approach is not acceptable at all in the world of
commercial winner. I mean, if you know there's a certain level, you have the
transaction, and then why not put a stop order for him? So simply. Market
fluctuations may occur immediately to see the movements of hundreds of points
in minutes. For example, September 6, 2011, when the Swiss central bank to
intervene in the currency markets, the Swiss franc pair moved over 800 points
in less than five minutes! Imagine if you use a mental stop loss and increased
slightly to make a cup of coffee and returned five minutes later to see what
your trading balance has been completely erased. Remember that this news is
generally not included in the economic calendar. Be careful.
Objective: As the issue of
stop-loss, it is also necessary for you to take the predetermined level of
profit before entering the business. Do not miss the emotions to control your
business, you can be fooled, and suggests that market volatility will continue
in his favor, and well beyond the level of benefits, it has developed and
greedy and push for change the "profit target for the search for more
points, but in the worst case, can lead to completely withdraw. Install your
goals and make sure they are logical. Of models of market prices usually
appears often you can take advantage of price movements in reading levels and
set your goals accordingly.
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