How to better manage your money Money Tips

Category: Money Tips Date: 2006-08-22

In the operation, most of the discussion are the analytical skills, market forecast, the funds control subjects, but few are dealt with, however, with a good financial control, even to throw coins out of the way to decide (for each an isolated incident in terms of the probability of both 50%), can also be obtained in the market a considerable reward, why not?? the following on this subject as a little humble opinion.

What is capital control? Operation is particularly important in the futures, futures, leverage multiples of ten times mostly in the spectrum, and you use only one-tenth of the value of his contract when the deposit to hold positions in the capital movement is not accidentally on, in the on the market often heard people say that, with three times the money to operate a futures more appropriate, Oh, why?? Why not five times, why not just use just the deposit? fact, these issues are mainly because each level of risk preference , the market reward and risk is relative, you have a high risk appetite naturally, we have the opportunity to grab a higher reward, but the process by the degree of risk is too high but the relegation of gambling and the like, it must prepare a financial control process, in order to operate in the way of speculative long-term, stable performance.

How to prepare for their own funds control process?? First, of course, have a fund in advance of the planning you put up with it to lose it several times?? Oh, must first have a set of devastating failures of mental construction, computing well after the That's what you can afford each transaction, the maximum loss amount, remember that every "T" instead of every mouth, that is, every time you shot when you can accept the maximum loss amount, Oh, the problem comes, someone asked , I am invested 2% as a stop-loss, but I was shining on technical analysis to operate, if the current price approach, then, in accordance with established control points by the stop-loss price if he came to, and will exceed my limit the risk of 2%, then how do?? Oh .... is very simple, then do not enter the court, chances are the transaction does not belong to you, because it is higher than you can bear the risk of speculation the extent of the operation , patience and discipline, while the iron is almost constant, hit trading opportunities facing the risk of non-degree program to give up the deal it, the market is always there, patiently waiting for part of your trading opportunities, it does not appear non - the situation is expected to appear can not handle the crisis. In addition, it was asked, what if the risk is much smaller than when my risk tolerance, how can I do?? Oh, do not doubt that part of your trading opportunities, and the courage to zoom to your site, as long as this "pen" transaction the amount of the expected loss of funds in your control flow within, and then a large part of all too few.

Control the way how to use the funds to increase profit and reduce losses?? This is related to overweight and underweight in the timing of operations, is a good example, and if you are an agent, when the goods once Jinleyipi sold nearly Jiucheng, you will not want to purchase? But when problems come ... increased demand in the market situation, naturally raising the cost of purchases, then to enter the number?? how else? batches??, or a full shuttle?? These are related to the issue of cost control, coupled with the previous market, already have their goods sold, but the industry also started to read the jealous purchase to sell, into the more afraid of poor sales, into the less afraid I lose ?? Oh ... .. the problems are more complex, we have the opportunity to discuss, and its basic principles remain unchanged, increases in capital boldly do, the operation will not ring true when the reduction operation.

Referred to the importance of the previous financial control, financial control is also limited to a preliminary ─ ─ control risk, control risk, but still can not alone achieve the goal of capital growth, there are stop-loss habits of operators, often in operation faced with losses can be avoided, but the profits did not know the embarrassment-like appearance, resulting in the stop-loss time and time again, faced with operations self-esteem hit again and again, and had more to do shorter, but the profit and loss ratio and winning percentage were unable to reach Effective remuneration expectations, long-term down sadly only graduated from the market, therefore, the subject of financial control is really quite a headache, look at the world's great master manipulator, the talk is nothing more than stop-loss, self-discipline and good financial control, in the stop-loss and discipline could Lists out most of a big chapter, but in most aspects of financial control to the minimum length of a phrase with before, why? Gein financial control is its long-term success of the magic, the market is itself a little to win more than lose, if they reveal this winning strategy, it is also mixed with what? Because of this, most people in the market for stop-loss and discipline can be easy to sing like a camel, recite the Bible, once dealt with control of funds, mostly arrogance Jieshe, or only say .... Ah, take three times the margin to do a single relatively safe, while the next? Oh, you can try to ask the market, the so-called "experts", 10 should be 9 not answer. Following the operation for personal financial planning approach, not necessarily for the best, but it is a method, also "for my operation" approach.

In order to look at the establishment of parts of the value of the contract value: no matter how large or small you have created the site, we must focus on the operation you can use to establish positions and the actual value of the amount of, say, 5 million to establish a 30, with the present 3850's price basis, the contract worth about 2,300 million, while holding the hands of your current operation of its leverage multiple of 4.6 times, if you allow only the hands of each transaction, a loss of 2% of funds, then the only loss of hundreds of thousands, for 2300 4.35 per thousand million (Oh ... looks very low), that is, I can only be an average loss of 16 points, oh, 16 o'clock in the futures market is only a small fluctuation, this time only a reduced part of, or to enlarge the proportion of each loss in order to cope with the long-term operating funds under the premise of control, you can do to make their choices? ?

5, using poker laws in the operation control of funds: Each of the end of the note, as the stop-loss for each transaction, we must understand that the license of each is a new beginning, we should have to play next at the end of injection, the operation is also is so, we must be admitted, we have to first under the bottom note (stop loss), there is no loss at the end of injection with the intention of blindly, Oh. . . Finally only gambled away a passer-by. Different from the operation and poker is that you entered the picture, look at the third card will no longer bet, the market will give you a natural stake, but if the third card make up the card-shaped well, then the stop-loss point moving under the appearance will not be under the bottom than you are a higher note. In addition, overweight, you are ready to take a profit as a percentage of the amount of risk? ? For example, I have a profit of 10%, ready to take one of the 4% to as stop-loss, thus increasing the operation of my site, OK ... now you have to take into account, when I step up after the operation site, the risk of This is 4% of the risk can not be for me to bring another 12% of the profits (profit and loss than 3 to 1)? If I can only control to enlarge the operation of your site (on the assumption that still retains the original appearance when the operating profit of 6%), otherwise, as poker law filling algorithm, to calculate one of the most suitable number of overweight mouth, you can only add so many many more words than you can load, give it up bar.

6 Conclusion: the above individuals to the entire operation in the capital control "concepts", while the pragmatic approach, as I mentioned in the beginning, to design a "suited to their operation" capital control methods, so only a able to provide personal ideas of these methods for your reference, if it hopes to hearing different opinions, or propose to discuss with everyone, after all, a long road to operate must be sustainable depending on the cause of, a view to every step, be careful look at every approach and appearance, good financial planning, the road ahead towards the winner.