Category: Money Tips Date: 2006-09-08
Funds Management (1)
I do not want people to invest a little money to participate in speculation, do not want to rely on one person involved in speculative mortgage loans, the specific amounts vary, but the bottom line of this money must be to catch your attention, while not always let you worried about heart.
The pursuit of 95% of the winning = 95% of the losers
Fund management is an easily overlooked topic novice, most novice obsession on finding a high winning percentage measuring municipal skills, and blindly believe that "if I have a 95% winning percentage, then I will become a top of the speculators." Really the fact that so?
Now, let's take a look at the following two traders.
A trader at ten times the average trading profit seven times.
B traders average transaction 10 times, three times earnings.
If you do not provide you with more information, I believe we all want to be a better A winning trader.
Next, we ask two traders of their profit and loss situation.
A trader hesitant: Oh, I'm sorry, I let you down, and 10 transactions after the loss I have a 500 yuan.
B traders with a smile: Ladies and gentlemen, I have earned 500 yuan.
The results will allow the majority of novice surprise, winning percentage significantly higher than the B of A trader traders not only did not profit, but also resulted in a loss, while winning 30% of B-traders are very profitable. What is the reason for this? Look at their records of transactions, I believe you will soon find the answer.
A trader transaction records
The three transactions generated a loss of
-370 Yuan
-380 Yuan
-450 Yuan
The average amount of each loss: 400 yuan
Transactions generated a profit of seven
100 yuan
80
120
50
150
130 yuan
70 yuan
The average amount of each benefit: 100 yuan
B traders transaction records
Transactions generated a loss of seven
-100 Yuan
-80 Yuan
-120 Yuan
-50 Yuan
-150 Yuan
-130 Yuan
-70 Yuan
The average amount of each loss: 100 yuan
The three transactions generated a profit
370 yuan
380
450
The average amount of each benefit: 400 yuan