Category: Money tips Release Date: 2007-04-06
Trading psychology is very important to many people the root causes of loss attributed to: poor mentality. Simulation trading is generally easy to secure a firm offer can be once you start trading situation would be quite different. Loss followed to see if the right did not do, do not hold, a mistake was made, it did not just stop because of hesitation, but, when the approach appeared afraid, with a total fear of the wrong and so on and so forth are numerous, all these are related to transactions related to state of mind! Mentality is whether the transactions are ultimately the key to effective implementation can be said that you have to do all the efforts around the exchanges eventually need a good mind to implement, can stop in time, can make the profit growth will also depend on the full state of mind! To maintain good trading mentality is every investor pursuit of the goal, I think that should do the following aspects:
1, good money management is the foundation
2, the correct understanding of loss is the key
3, focus on stop-loss, non-profits to consider the measures.
To do two things at the front, you will still be profitable trading mentality is difficult to calm the impact of desire. The desire to profit all the time surging in our hearts, we are also profit-seeking purpose of the transaction. This desire will be the same as the ants scratch in our hearts so that we worry about the outcome. Our mentality as price fluctuations will be good times and bad, bought a total want the price to skyrocket, selling a total want the price to fall all the way, this eager desire for profit will lead to your own mind disturbed. The market will never go according to your mood! In fact, in the transaction only thing we can control only their own stop-loss, while the profitability will not listen to us at the mercy of it, because the market is unpredictable. We can only do what we can do, and we must strive to do what we can do, and do a good job we can do, and you the things will come. Stop pegging can do is do our work because we can control the stop-loss; if pegged to profits or market, you do not control themselves and grasp things, the pursuit of things that would certainly fail to grasp your mind can not grasp. After that we just stare at stop-loss approach, as long as the price of less than a stop-loss point, we have been held, should not be too concerned about the fluctuations in concrete, and too concerned about the volatility will cause fluctuations in your attitude is also non-stop. Stop-loss is relatively static, with the controllability, controllable nature of the stop-loss will enable us to maintain a good frame of mind. There will be a proverb: Let the profits take care of themselves! Very insightful! When you just stare at stop without taking into account profits, as well as what factors can to make your mind to lose? Stop-loss does not consider pegging the profit is not the pursuit of profit, but rather the pursuit of profit is the best method, because profit is naturally out of it is done right after the patience to wait out positions, rather than deliberately seeking and frequency of transactions created, This is the source of profits. Risk Management Well naturally the profits will come! ! Maintain a good state of mind must cooperate fully with the above three aspects, we must first correctly understand the loss, frankly accepted the loss, and then by the fund management to control losses, the final stop with the peg does not consider the implementation of the profits go to the specific transaction. To maintain good trading mentality is a systems engineering, not simply good financial management will do.
