Category: Money tips Release Date: 2007-05-21
"Re-wisdom of the people would not give up certainty, while the pursuit of uncertainty." - Samuel. Johnson & Johnson (Samuel Johnson)
But this is not help people. This moment, we should leave the money market and bond market, we have shifted from the certainty of uncertainty. For some people, this position is not comfortable, while others think that living in this place a very unwise.
Unknowable in the opportunity to
"In addition to the unpredictable nature of things, nothing is certain of."
Successful traders realize that, in the unknown, there are still a profit opportunity. They know that any future transaction results are unpredictable. For only the probability of events they are willing to accept.
Of these transactions are concerned, the probability of enough. When they carefully consider whether there should be a transaction, even if the situation was unfavorable, they are still welcome to uncertainty and frankly face. They always use stop loss orders to control risk. They try to limit risk, because they know they know it. Uncertainty of the benefits of acceptance of uncertainty in your choice of trading methods have played a very important role. The results of any transaction is uncertain, but you also recognize this uncertainty, you will not be on the market a wide range of news and views by it. Do you know the so-called experts, the same can not predict the future. You do not deal too much or too low because there is no need. You want to protect themselves from external risks. You are willing to take immediate action, because unless you know one thing has become history, or you can never be its positive.
It is precisely because the future is unknowable, you must fully understand that their skills are less than the Department, as traders can not predict a particular transaction is losing is winning. Aware of this, you will from the will to liberate themselves from the pressure. Your task is to identify a variety of market and the delisting of the signal, and act accordingly. What do you think do not have to re-assess themselves, because you have established a set of their own methods, according to their own assessment of the probability of preference, but in the long run, these probabilities will bring you some profit.
Necessary to correct
Some people cling to the requirements of the right to judge. In the heart of hearts, they always feel that if they have mistakes, will bring very serious consequences. This may have a multiplier effect of their transactions.
First of all, such a trader can not act quickly. Prior to entering the transaction, he will repeatedly hesitated, but in the real deal, he may also think about those who quit, because the trade gradually became unsatisfactory. He was always trying to find a wide variety of opportunities to prove he is right, because he needed recognition. However, when the time comes, is often too late.
Secondly, such a trader may be due to too much want to prove himself right, so that he could not accept that he held positions with the opposite message. The market may be turned around - to stop and reverse the trend of the original - and he is still stick with their original positions. If you need to prove that he is right, you will be persistent in their own analysis, regardless of whether the evidence of all is the same. And you have to pay the price.
Proved to be correct when the need has become more important than reducing the losses, the situation would be very bad. In the real deal, we can find that many traders have such a common problem: struggling to prove his right to refuse to accept their own mistakes.
Open minds because a successful trader is not particularly to prove if they are correct, he can give all kinds of information on the market to maintain a liberal idea. He will not sing a different tune with the market, but the flow line. It can accept the market's intrinsic value. For those who wish to profit (rather than to prove that he is right) transactions are concerned, price is everything.
Questions correctly
Another transaction, you may have to ask themselves some questions. Question is very important because they guide the direction of our thinking. Therefore, the more questions to himself, leading us to hope that the direction forward, it is very meaningful.
Because the market direction is uncertain, you do not ask yourself such as "this fair a success?" "Broader market will rise or fall?" Can not answer such questions. Instead, you might ask yourself the following questions:
"How much money I might earn?" (This allows you to consider the potential for profit.)
"My risk is what?" (Only establishes the revenue potential, you may turn to consider only the possibility of risk.)
"I judge mistakes, anything can prompt me?" (Which makes your vigilance and attention to possible departure from the signal. Even if the signal is not accompanied by the emergence of trading mistakes, but to make your earnings continue to grow, you also should be very vigilant.) "The market is telling us?" "The market wants what?" "whether there is anything I missed, or ignored?" "What is the probability?" "My question is correct?" " Now, I should mention the most important question is what? "
Such issues will allow you to remain vigilant, revealing various market conditions, highlighting the reality. These problems admit a basic fact that changes in the market is uncertain, and only probabilities can be estimated.
The future is unknowable. A successful trader full acceptance of uncertainty, even enjoy it brings mystery to it. Of which bears the transaction on the art and passion. After all, if we know what the future may determine, the game will not be able to go on.
Probability give you the strength. Probability as a sword to help you overcoming all obstacles, from the mercy of luck. After all, luck not last forever. You have to create their own luck. The use of probability to guide your analysis, trading and feel it would be a good approach.
