Despite what some people may lead to believe that, day trading, swing trading and exchange trend is not anywhere as difficult as it would like to think. It 'really reduces two key components.
First, you must have an approach that helps you identify occupations that have a constant high probability of making money. Once you have this you must exploit this "edge" over and over again.
The only way to do this is to use the discipline not to deviate from your system. The minute you start tinkering or change things is when you lose your edge!
It is very likely to be tempted to do so after having had a few losers. This is the moment, however, to maintain the focus and remember that the statistical system has an advantage that has had over time.
Think about this for a moment? If you go to gamble in Las Vegas and may also have a 1% advantage over the house you can literally make a fortune by exploiting this advantage. What a po 'di percent advantage can make the casinos lose a lot of money over time. As a matter of fact, the minutes notice that you have an effective system that label a ban on cheating and from the game. E 'is certainly a good thing that can not happen to traders!
Now consider what happens if you have a business strategy that produces jobs that go the money in more than 60 to 80% of the time?
Now the second step to success is to manage your emotions. Two of the main indicators of an operator that is not manage their emotions are FEAR and greed. These two emotions will wipe every operator over time, both expert and novice alike.
We talk to them for a minute ...
FEAR: fear of losing money or fear of being wrong is what causes traders to have this emotion.
"The exchange of money with fear" often causes the fear of losing money. This is a merchant, when the risk is that the money should be used for rent, food, children's education, etc. In this case the only solution is to find additional funds that are willing to put at risk. This helps to put your mind at ease and reduce the fear.
Fear of being wrong is simply part in all of us that just do not like to be wrong. The cure for this is simple: Set up and accept that losses are part of this game. Think about this? A baseball player just need to hit the ball once for every three times to the plate and this will have him in the Hall of Fame.
I feel this every once in a while and I remember that ... My approach to the negotiation has both historically and in real-time product consistent winning trades. This gives me the confidence to step up to plate and keep swinging. Moreover, I tell myself that the only way to earn the big money is to come into play.
Greed: The operators are hungry are often the exact opposite of those who are fearful. They have no fear, which may have difficulties. They tend to trade more, not follow the rules and basically "wing it". Sometimes this work, but that often ends up back-firing.
One of the biggest problems when you put in greed is the inability to know when to take profits. They are so bent on making a killing that they are never happy. If you are 10, 20 or 30% of them do not even think of cash as they want more. This often leads to the inability to see the turning against the market and then allow winning trades turn into big ones lose.
One solution to this problem is to realize that making 3, 5, 10 or 15% over a short period of time regular basis adds up really fast. I know that for me personally, once I was confident in my own way, I have not heard the occasional feelings of greed. Now I do not worry "go for broke" because I know that there is another good market waiting for me.
Dr. Jeffrey Wilde, a trading veteran with 16 years of experience is a trading coach to over 3500 traders in 63 countries. His new blog http://www.askjeffwilde.com offers free trading articles, tips and advice. He also teaches a variety of courses found at http://www.win-at-trading.com and http://www.fastforexprofits.com
Article Source: http://EzineArticles.com/?expert=Jeff_Wilde
0 comments:
Post a Comment