Category: Money Tips Date: 2006-07-12
Recent financial diffuse a false belief that a transaction, especially futures, like gambling, and totally not an investment. Of course the key is that traders are not gamblers or just Wanpiao nature, studying the "Art of the Deal" can greatly improve the chances of success of the deal, but beyond that, trading and gambling do have similarities, from a successful career gamblers who can learn some of the know-how applicable to the transaction.
First of all, let us traders and investors to identify the similarities and differences. Transactions are part of the investment. Investors to do business, focus on the long-term rewards. They choose to value is significantly undervalued stocks, and then wait for the value of these shares rebounded, and sits by and pockets to buy the same shares of stock, but usually not long-term holding. Investors may have bought Microsoft (Microsoft) stock, then hold for three years, but traders may be in three years, buying and selling Microsoft shares up to two, thirty times. In addition, the investors did not provide for venting, but the price once the fall, traders will be conducted shorting to profit. If Japan's economy a huge recession, triggering a large number of wheat in Japan cancel orders, traders may take the opportunity to shorting wheat futures. However, when excessive shorting wheat futures, traders may in turn buy wheat futures, waiting for a rebound. Investors do not, they who bear market will wait and see attitude, waiting for lows before we can buy wheat futures, and then long-term holding.
To give another example to illustrate the traders and investors of the similarities and differences. We imagine two people in second-hand auctions to see some of their recognized value is undervalued antique furniture. Traders will buy the furniture down, to restore it, at most, a few weeks later resold it, investors will buy the furniture, but will not be easy to sell.
Now, we compare the similarities and differences between trading and gambling. Traders not as crazy weekend in Las Vegas Las Vegas, gamble, gamblers lose ten thousand dollars, they would not have a dollar to buy five lottery tickets, the dream prize or a special prize. Gamble, and buy a lottery that two kinds of random acts of entertainment in nature does not require any effort, planning, vision, or implementation capacity. Traders will be more like gambling to operate as a business professional gamblers in the gambling among the banker is always a winner, but professional gamblers know how to reverse the situation, so that their own position of strength. Similarly, traders from other traders would not notice, or less familiar areas for opportunity. In the early American South, scraping the scales catfish There are many methods; Similarly, to win bet there are many techniques, trading success is also cleverly different. I know a very successful trader, he is very good at the rate calculator, and when he thought of the casino to try their luck, the casino owner went so far as to pay him, and to expensive limousine, plus a high-level suites, dinner, and the singing and dancing show VIP tickets in the hope that he will not gamble on fate.
Trading and gambling, there are other similarities. First, both must be the money into an arena filled with uncertainty, gamblers do not know what the points will appear dice do not know what will happen arranged playing cards, but traders can not predict how prices will fluctuate. The difference between trading and gambling, as gambling may be the transaction does not generally have to face a pile of chips with the entities, and engaging in confrontation.
Secondly, trading and gambling need to work to find and calculate the probability of the greatest rewards. The only thing in life can determine the death (some people think that is a tax); Thus, even if you are in the trade or gambling skill to reach the professional level, you can at best put the money might have predicted what the outcome.
Third, traders or professional gamblers If you want to succeed, we must learn to finance, to understand the allocation of financial resources. Professional gamblers will allocate the funds he was willing to take risks to gambling, in other words, he was placed at the roulette money is he considered himself Shu Deqi number. Traders must follow three steps to the allocation of personal assets: First, we must decide the individual transactions, bank accounts put the number of money; and then decided to market a particular amount of money invested; and finally, and then decide each transaction are willing to risk that.
Traders can be a successful professional gambler who has learned many codes of practice, because gamblers have to face slim chances of unpredictable and heavy tensions. Driving from a very difficult fighter flight training to hone their skills for the future face of actual combat, it will feel easier than the training process even simpler, such training meet the challenge laid the foundation for their success. Similarly, if traders to understand how the professional gamblers in the casinos face a challenge in the future in the face of the challenges followed, you can cope easily. The following is the trading and gambling can be applied to common principles.
Does not play the game they do not understand
Professional gamblers will successfully avoid the chance of winning or losing is uncertain and unclear context, it is strange, uneasy, or not very professional gambling; traders must also deal with the scope and expertise of individual commodities, it takes time to develop . Do not be too believe that "beginner's luck," luck alone last somehow pay the price. Traders must continually learn from experience in the trade market and the individual goods to sniff out those that appear trivial, in fact very important details. Age-old trading principles tell us that: "There is doubt, do not approach", these words are still valid.
If you can not help but want to enter the court, can seek the assistance of other traders. Perhaps your family and friends among the experienced seasoned traders willing to teach you, provided that you have to do some research and the exchange of technical work. Most of the people through reading, listening to lectures, or attend seminars to absorb valuable knowledge, but definitely not as practical to stay in an experienced, knowledgeable, successful and trustworthy trader side, with his alongside the school even more. Just follow the successful, professional traders, according to his instructions the method and timing to do, you can make money. Life lessons can be learned in many areas, the transaction is the same.
The value of apprenticeship can not be denied.
Why do professional traders are willing to share their secret with you then? One reason is that market is enormous and can accommodate a lot of money; Furthermore, still at an initial phase of the traders to learn from them, to a small amount of money to follow their operations, and will not waver in their position or achievements. Moreover, the beginner is the spiritual pillar of professional traders. Professional traders often like to tell others their ideas, to organize their own ideas. More professional traders attracts people's attention, will behave better, in order to make a model for others, they will also know how to suppress their own shortcomings, prejudices, and weaknesses. When my son to follow in my side to do transactions, I will not help more careful and accurate compliance with its own trade principles, in particular his own money to my investment.
