One of the most important rules for the commercialization of financial markets is to rapidly reduce and reduce their losses; allows runners to run.
Generally, you want to allow your trades in the green field as long as the market is willing to give.
On the other hand, you should cut your loss and leave the position to save your capital when you immediately indicate that there is a trade that is going on; live south. In other words, the reverse does not appear; come through and you would be better off to cut your loss and reduce your risk.
The intention is to provide those crafts that are profitable with the room to be developed without a & # 39; save your own settings. By doing so, although favorable situations are important, rather than having a & # 39; closing trade in advance and loss of potential benefits.
Are sounds just right? Well, it's not always so easy.
To lose feeling
This basic rule is set for winners and casualties quite often, but new investors and professional retailers are usually reminiscent, because a message is likely to be & # 39; undertaken.
"Sure" you say, "I can manage that and keep my feelings in a check," but it's a truth that no one is there. 39; in robotic nature, and one does not know 100 per cent of the time of the correct direction given by the price.
As people, we are liable to "loss loss" – tend to avoid deleting loss or loss. Therefore, we are susceptible to run our losses, so that we do not miss.
Identify when trading is & # 39; Going south is the difference between strong financial ruins and little success (with the ultimate obviously the preferred option).
However, research is produced, despite being aware of its & # 39; The obvious and most significant course is to be done, sometimes people leave that route and test. Despite this, it's a & # 39; try your money or your one-way ticket crafts to "City Rect" when you make investments.
Instead, work on and maintain a sequence of rules / directions that you follow. By examining any inconveniences that do not have a & # 39; In keeping with the mantra of "cutting your loss," you can seriously impede your risk and your market risk.
Insurance to insurance
Indeed, successful traders have a unique type of personalization and mental mind that allows them to look at a piece of information without review.
The wonder is to find out when trading or cutting off comes from knowledge and the ability of arable value from your strict trading rules that divide the learner from the professional.
A probation algorithm also provides a problem, where you are experiencing a & # 39; Try to be "right" rather than the left and on-going goal by following the rules that are mentioned.
The emotionality of emotions can not be transfered, such a cutback and your winners lets a little longer, especially if you do not see any purpose to terminate their trade thereafter .
What do you do?
Here are some rules that can help you to fund the arts to & # 39; allows running winners and losses of losses:
Investment against investment is: Both trades and investments include a & # 39; searching for profits, but they follow this goal in a variety of ways. Required investment includes a commitment to an opinion likely to be & # 39; economic growth management, say 10 years ago. So hope is an important part of investment.
No, however, at Hope, any place in trade, as it usually involves moving. As a result, by keeping the situation a & # 39; Lost is hoped that he will bring back the lost ground, it will only give a deeper loss of marks in recognition of a market (ask for a future trader).
Remember to be a trader: When it is missing, most traders will away from making investors to long-term investors at any time, naming a long-term sound foundation. This change is usually very successful in disasters; trading, since midfielders typically include a huge increase. So, finally, a big campaign is trading for a business to accept the trust and its; move out of markets.
There is no trademark of revenge: The vengeance of revenge is that there will be an irregular desire to lose loss in the shortest time and usually from the single market you lost money. That's again to turn traders to & # 39; Provide rapid profits and allow defaults to go to; running, continuing to even deeper. The best thing to do after a great loss is to sit on the side for a few days.
Do not match equals: Most traders, especially beginners, always have a & # 39; looking for a high degree of winning in the loss of benefits and loss. Since our childhood, we get an award because we're right, so there is a high level of more resilient benefits. However, this disagreement is of a high level of winning, which allows traders to take advantage of rapid benefits.
If we get a quick shot and allow us to run the winners, our winning level may be 50 to 60 per cent. However, we would do more money on our crafts compared to what we would do; loss of bridges.
Remember that the captain of the Titanic was only wrong. The size of the error is important and not the number.
Declaration: The author does not hold a cryptopy during writing.
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