50 common mistakes Money Tips

Category: Money Tips Date: 2006-03-30

We are on the "Why do the majority of investors lose money in futures trading," The issue of more than 500 experienced futures brokers conducted a survey. These brokers more than 10,000 customers engaged in futures trading. In addition, these agents have been or are doing their own futures. Their answer is no record of 11, because different investors to make money or lose money for different reasons. But they are very similar to the reasons given. Maybe you can draw some insight. Really "Unfortunately, the family is the same. Happy family each have their own happiness." Majority of futures investors lose money because exactly the same. The futures brokers may be summed up some of the truths you learned something. I hope you can sometimes unpredictable and often abstruse obscure, always fun of the futures market, a grand show.

Futures broker says:

1. Many futures traders trade without a plan. Transactions, they are not setting the risk limits, nor to set earnings targets. Even in the scheme, they are always "second guess" does not stick to the established plan; particularly in the case of a loss. Often results in excessive operation, forcing himself died in a road, eventually forced to sell at a loss out.

Usually, they are flat out a good position, leaving a bad position.

2. Many investors do not realize that they have seen or heard the news of the majority of cases the market has already digested.

3. After several profitable trades, many speculators complacent and arrogant. They are no longer under the solid fundamentals and without consideration for the technical reason, but on hunch or a bold conjecture to do list; What is more desperate, saying that "not lose!."

4. Traders often are low, position large; the stock market frequently difficult to make money.

5. Some traders try to "win the market", the day was heavy and short-term trading. They are quick profit, greed.

6. They do not default risk of a losing position, no stop.

7. They often hold a bias in the direction; such as is often the idea of holding long to do a single.

8. Due to lack of market experience, many investors are emotional or financial resources devoted to a transaction, and unwilling or unable to stop. They may not admit that he had been wrong, or too short-sighted view of the market.

9. Excessive operation.

10. Many traders can not (or unwilling) to accept a smaller loss. They often hold a loss position, have been How do you look up, and was forced to sell at a loss out. There is no rhythm of the abuses: an investor should be worked out a set of your own trading system, and perseverance.

11. Many investors to grasp the fundamentals of a message, hang onto it, even if the market trend has changed technology, do not care. Only technology we can expect that the trend line with the fundamentals of the. They must maintain the rhythm of the tune.

12. Many investors violated a basic principle: "as soon as possible to settle a loss, try to put enough surplus."

13. Many investors are not the heart to deal with the brain. Adversity (or success) will distort their judgments on the market. That is, they should plan ahead, then we must adhere to the reasons for acting according to plan.

14. Traders often do not step on the rhythm, but do not have sufficient funds to cover the period of turmoil in the city.

15. Many investors, as the futures market is the intuitive stage. Fluctuations in the price of a direct response to fundamental changes. Can not distinguish between price fluctuations with the market trend changes in the relationship, often liable to a loss.

16. Non-compliance with pre-established trading rules, the result is lose a lot of money, make a small profit. Many investors enter the market to set the early stage of attack and defense program.

17. Sentiment has often led to the loss of the majority of investors holding long positions. They can not discipline themselves to take small losses, to obtain greater profits.

18. Too many investors Mancang operation, a huge volatility in the market when forced to sell at a loss out.

19. Some investors because of greed and hoping for larger profits, and eventually into the hands of a loss of earnings position. This is really a lack of rhythm. Because of greed, some investors are betting will be a one-time, full warehouse market.

20. Investment in light of the market market is dangerous.

21. To take big risks too little profit potential, destined to embark on the road loss.

22. Many investors loss is because the book did not follow its own money to stop.

23. A common problem is, investors do not realize that market trends in the market with the difference.

The lack of rhythm is a major weakness.

24. The lack of rhythm, including a few items: such as lack of patience, slow and so on. Many investors can not accept the loss and prompt action.

25. Against the trend, in particular, is not to set a reasonable stop, full warehouse operations, financial mismanagement, is the main reason for huge losses caused by futures trading; however, well funded and can not guarantee your success.

26. Excessive transaction is dangerous, and excessive trading is often due to lack of planning.

27. More speculative trading of goods is a common mistake.

28. To hold profitable positions have been very difficult. This is the futures market, a very prominent issue. Most investors easy to see Lee left, so that homes will be big by small, picking up a pound-foolish. Another problem is the shortage of funds; account too difficult to work, nor can the effective use of stop-loss.

29. Some investors opinionated to listen to the views of others; they always insisted on self-inflicted.

30. Many investors in the event of a loss, are accustomed to procrastination, indecision; positions for profit is just another taste. It sounds easy, but doing it requires rhythm, the right to act. Whether you hand position is a surplus or deficit, so that this will be difficult.
Many investors operate their accounts too much money.

31. Futures tend to have no rhythm, no plan, a lack of patience. They excessive operation, etc. not to be the market opportunity. On the contrary, they seem compelled to trade every rumor.

32. Traders based on their knowledge of some information (even more terrifying is based on intuition!) To determine: the deteriorating market is only a short-term process, and so liable to huge losses.

33. Venture capital market is not leaving, which means that there is not enough money to cope with the market at any time of the event, would be unable to market ranks.

34. Some speculators do not accept the small losses temperament nor the patience to hold profitable positions.

35. Greed, such as the common or a grab grab the top end of such errors sandals more often than not.

36. No trading scheme would lead to confusion in financial management. Thus, when too much ego to go when the futures trading in, the result is emotional trading.

37. In most cases, investors are only based on local conditions to judge the market, regardless of the surrounding markets究竟怎么�

38. When the market or have back along their own ideas, when scheduled, speculators will let emotions overcome reason. They can not formulate a plan to act in accordance with. Good plan must include defense points (stops).

39. Some traders are reluctant to believe that the meaning of price fluctuations, so the operating times of adversity.

40. Many speculators Zhizuo a commodity.

41. For the goods are being shot up too early on the loss-making positions has dominated for too long, the result is a no-win or lose.

42. Under adverse action is a common mistake. Excessive trading, day trading too frequently, lack of funds or, worse, mismanagement of funds in the futures trading will cause the above-mentioned mistakes.

43. Common phenomenon is that some investors looked to morning rush to kill a news account; the market is often already digested the news.

44. Investors, or brokers a lack of self-regulation would incur losses.

Futures traders tend to do some improper research.

45. Investors can not clearly distinguish and to comply with a number of risk indicators, such as stop-loss.

46. Most investors in the market where a lack of research on the excessive action. They use the information at hand is very poor Jiancang go big. They are frequently out of trading in Japan, resulting in margin losses;, they are reluctant to accept small losses.

47. Many investors use "conventional wisdom", either stick to one corner, either holding the market in the old stories energetically chewing. They single out a slight profit on the disposal, yet more profitable space to the others; while a loss position is geese are swans. Few people go to spend time and make efforts to research the market hard to analyze their own emotional state.

48. Few investors to use the money management techniques. They do not have rhythm, no plan. Many investors even in the market has deviated from its own circumstances, is still clinging to silly, do not stop.

49. Many investors are used to heavily armed. How much do they really have much. In the market has clearly deviated from the position of the hands of the case, they still can not switch to a flexible brains. They do not have good battle plan and it has the courage to insist on according to plan to implement them.

50. Do not listen to inside information to trade. This is not legitimate, but also the internal information is often wrong.