Vince Lombardi once said: "Winning is not everything, it is the only goal we should strive to achieve. This quote emphasizes the necessity of formulating clear purpose and tireless work towards its achievement. But overemphasis on winning at any cost may be harmful, especially in the turbulent and changing world of trading.
Win, of course, is important. If You lose too often, ultimately, your score will be reset. But it is vital that You looked at winnings with the proper perspective. Many beginner traders, having experienced success at the beginning, then give the market. This often happens when the traders too presumptuous. When combined minimum experience and a great luck they fly to heaven, but their winnings do not have a solid support. And ultimately, they "fly". Perhaps the first win with little experience. These early successes, however, teach beginners erroneous thinking. They think they already have the necessary skills and can only focus on maintaining the winning orders statistics and the corresponding image.
But ultimately, unbridled need to win can lead to failure. On the one hand, the more the trader is focused on victory, the more pressure he will try. Excessive stress can improve performance, if the task is well-tested and relatively uncomplicated. But trading is not easy, and for a beginner it is not impossible, it aware of it or not. For example, traders should filter trade set-UPS through their psychological features, and under the influence of stress perception is distorted. You must develop a quiet and focused thinking. But when the prevailing one sense, the desire to win at any cost, this leads to anxiety, excitement and distraction.
There are sayings athletes, which can be attributed to trading: "No matter if You win or lose; it is important, as You play". In relation to trading, successful trade - a question of construction of solid trading skills and the consistent use of a clear plan. Trading profit issue of probability, banishing strategy many times you worked the law of averages.
On a large number of perfectly executed trades You will come out with a profit. If You follow your plan accidentally, You will not be able to take advantage of probability. Statistics of your transactions will fluctuate sporadically, in accordance with your discipline. Winning is not as important as consistency and commitment to the game plan. So, when You trade, remember that You "win" even when losing, until follow your own trading plan. Run sequentially plan You can win in this transaction, but on a large number of transactions You become a winner.
Trader - sensor, for example, may want to learn a certain price level, where will manifest resistance. He would have preferred to follow a set of rules to determine precisely where there will be resistance. Intuitive trader simply examines the "rules" identification of resistance, as only the principles that can sometimes work, sometimes not. For example, resistance is possible will be at a round number or at the level of the previous peak or bottom, and perhaps never will. No one probably does not know; such principles - only opportunities. And here intuition allows you to trim overly-complex choices. Sensors look at the market concept literally, believing in their truth, not in abstract concepts. Intuitive trader looking at the markets in the figurative sense. All signals and indicators are subjective in the end, they can be a bit inaccurate, and with some accuracy describe the reality. There is a chance that they will be wrong, but that's okay.
When it comes to market in General more profitable to be intuitive trader. Reading graphs and market sense - subjectively. Trading decisions are based simply on reasonable assumptions. They are not correct and are random, unpredictable and conceptual. They're not linear. Experienced traders and craftsmen trade have long noticed that the sensors difficult to learn how to trade. They want to find all the relevant facts and immutable rules that can be used to predict the market. They think that if you find the "right" set of signals, it is possible to make a large profit.
it would be nice if it was so simple, but if it were so, there were geniuses in the economy and other areas billionaires market, but they are not. Why? Because markets are so complex and chaotic that requires intuition, guesswork, and a kind of creative skills to consistently win. Logical analysis of the facts and numbers can make very far, when You try to sell on the market, with inaccurate numbers. So, if You are a "natural" intuitive type, You have good makings. And if You - sensor, try to develop your intuition. Become intuitive trader, and You will see that the profit will grow.
as soon As the deal is open, there are two possible outcomes: the better the outcome it can make money; at worst could lose. Between the best and worst outcomes is the break-even point, and because of its промежуточности she has a psychological value. She shares of fear and hope with one hand and greed on the other. Side You're on, determines how You see the anchor point.
When we are closer to a worse outcome, the break-even point - the ray of light, giving hope. People have a natural desire to avoid the risk and losses. When the deal shows losses, many try to keep her, hoping that she would return to breakeven, where there is no profit, but at least no losses. But the hope is often leads to losses. Hope no place in making trading decisions. Opening the transaction, the entry point and protective stop should be calculated in advance. If it is done properly, there is no reason to allow the hope or any other emotions affect your trading decisions. You have to trade almost mechanically. If the trade goes against You, just leave as soon as the stop price is reached. Don't let hoping to play a role in your trading plan.
There are many more serious grounds to reduce your losses than the hope for a turn unprofitable transaction. When You are in a losing deal, You rarely there is one. Many other traders also, for example, attempt to exit long positions without loss. And there's shorts to protect this area to protect profit. It is unlikely that You can win in this competition, so better to cut your losses and move on to the next deal.
a Look at the break-even point with profitable hand is very different. When the transaction brings profits, traders have a tendency to take profits too early, again, because they are not inclined to take risks and to take even a potential loss. Leaving early, however, they do not allow to grow profits. This limits the size of winning deals, it means that the total profit will be less. But there is a way to fix the profit, which allows the transaction to work longer and bring more profit. As soon as the profit exceeds the initial bet, stop can be transferred to the breakeven point. This strategy will allow You to fix some initial profit at virtually eliminate risks. All that You can lose Commission. In addition to reducing the financial risk also eliminates emotional stress. And low voltage means that You can evaluate the General picture more objectively.
unfortunately, many beginners so fixated on taking profits and demonstration rainbow profit/loss report that they cannot bring themselves to move the stop to breakeven. They feel that the strategy locks them, and may limit the potential profit. They struggle with the desire to move the stop away from the original level or cancel it altogether. It may badly affect the account. The foot should never move away in a big way or cancelled at all. Such methods will be called emotions that adversely affect the trading decisions and, ultimately, will lead to the collapse. Discipline is the best strategy.
it is Useful to understand the psychological importance of the break-even point, whether on one or the other side of her. On one side You will overwhelm the fear and hope, on the other - greed. It is crucial to recognize these emotional trends and to make every effort to address them.
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