Category: Money tips Release Date: 2006-08-16
Long-term deal completely different, if the short-term traders is the artist, then the long-term traders is the engineer. Artists and artistic creation is full of excitement and passion, while the engineers work is full of hardships and challenges, because the projects require long-term efforts in the middle of unforeseen circumstances arise. Pay more attention to rational long-term deal, rather than passion.
Theoretically more suitable for long-term trading large numbers of investors, because he focus on rationality, but it is precisely because he was too rational and objective, they will lose the excitement of daily transactions, forming a kind of loneliness and need endurance of the transaction, a bit like Dervish, which live in poverty and so many people to re-join the ranks of short-term trading to go. Pursuit of long-term trends in trade that the trend is his only true friend, is the source of their profits, he did not attach importance to day fluctuations in the price of that day fluctuations in the price of almost nothing to do with themselves, it would be people to think you're insensitive, or even like a fool, he does not attach importance to how stocks would go the next day, he is only concerned about whether the end of the trend.
Long-term position trader's patience is definitely not beyond the comprehension of ordinary investors, but also the non-retail investors can afford. Market, there is a misconception that long-term traders were able to position a long time because he was able to predict market trends and end it in order to ease the long-term hold! This is a big misunderstanding! Long-term traders like you do not know the future direction of the market, he was only discipline to track trends.
Disciplined long-term position to put up with poor understanding of the suffering of ordinary people, we can say is that long-term profitable market for the long suffering of the exchange for! Market volatility can easily eat up most of the profits of the original positions, the most unbearable thing is that this fold-back or do you tend to think that really want to happen, which means you just sit back to see the profit, that if a person in you have to prepare the case of your money away, like the pain you understand? Accept this? Long-term traders to give up a lot of that is bound to seize the profit opportunities for long-term profitability.
In addition, the long-term transactions, fewer opportunities, the market for most of the year are in shock, shock among the long-term traders have lost money, and are often in positions to convert to a loss of profits, this torture enough to crush anyone! At the same time, the market and sometimes sharply folded back and generate a signal the end of the trend, you are forced to lose a great one in the case of profits leave open positions, but after the market is towards the direction of the original run, this time you have to have superhuman courage and perseverance re-enter the court, these cases really is easier said than done will be difficult than you imagine!
Indeed, the long-term trading of the most important thing is to maintain objectivity and discipline, in many cases, have to give up your own fresh ideas and judgments, but the end of a successful long-term they can obtain an enviable position in return, which is the reason why long-term desirable reasons. Long-term deal with one of the greatest features: loss of small to win big, he does not attach importance to the number of profit and loss ratio, while the emphasis on the quality of profit and loss, which is his most essential difference between short-term trading!
