City of the three kinds of speculation of suicide weapons Money Tips

Category: Money Tips Date: 2006-06-21

Fatal Error 1: failed to quickly stop

The success of the transaction as successful in life, is determined by the loss of our control, good or bad decisions, not by us to avoid the loss of good and bad decisions. If you really want to be a shrewd trader, by making the loss becomes small, to learn how the loss of professional bar, This is the key.

No quick way to eliminate the stop error

1, when things do not always bad when you have not yet decided what position you should protect your boat began to deal. Like that has not set a stop loss should never start a transaction.

2, always adhere to your pre-set stop-loss. This industry goes without saying, but only a few aspiring traders to have enough self-discipline to do this. Why is this so hard to do this? Because the stop-loss point out that a very good understanding to accept that you are wrong. This behavior will not bring a warm feeling of pride, nor to establish a person's confidence. But the real deal masters have learned to overcome these difficulties. They have become a dizzying pace in order to stop-loss expert. They do so because they have trained for those who do not work for them an intolerable position sense, and just one out of trouble when it will kill them.

3, if you insist on your hard stop, first cultivate the habit of selling half the position bar. By doing so, met the two opposing impulses, impulses from the down position to the down position and an opportunity to re-up the impulse. By the problem is divided into two traders will always be a greater degree of clarity and spiritual focus. Psychologically, traders find that their situation is not so difficult, and therefore feel better. How to deal with the remaining half of the problem still exists, but because half of the problem no longer exists, and come up with a viable way to become more easy.

Fatal Error 2: count the money

Constantly monitoring the moment how a transaction might be taken away Change is a dealer for many years the profit of a destructive activity. This process, often called the "count the money", which will not only deepen the fear, but also increases the uncertainty of every moment, made it impossible to focus on the correct technology. And the right technology ultimately determines how much we can profit.

Too focused on "what position you are," the idea, rather than do what you should do, will lead to unwise and unfounded knee-jerk and the rapid response. In contrast, traders must be satisfied that they are every step of the technology are correct, and if followed correctly and technology, profits come naturally.

"Count the money," usually those who are not accustomed to frequent traders profit a mistake. ??? Not only looted the considerable proceeds of traders, but also contribute to a long period of uncertainty, the fear of loss can lead to destructive behavior and an emotional imbalance.

How to overcome "the number of money" problems

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1, for each transaction, set up two protective sell price, sell your entire position. You do every transaction should have an entry point and two exit points, that is, stop loss and targets. Stop-loss order to protect the objective is to profit.

2, only held in position when you reach the stop point or target point and, when sold, regardless of which one in the former. Adhere to this principle, traders put the fate of every transaction on their trading strategy, rather than in their own greed or fear on.

3, how, when you want to sell at any one point can not be restrained until the desire to sell, only sell half of the remaining half of the reservation until the policy permits a selling point. In this way, you not only satisfied the desire you want to sell, while retaining the integrity of your trading strategy.

Fatal Error 3: Conversion time frame

Does not have a cycle starts, and the other end of the cycle of the precise point, but in the intersection point of overlap. This blind is to point out that many market participants to commit a very common mistake: In a time frame to buy, sell in another time frame. This "conversion" time frame is but a reason for ignoring stop fills and the stop-loss is our only protection against disaster.

Through from one time frame to another time frame, traders postponed to become the ultimate losers feel. With a weak plan to conceal their failures, by fostering false hope into a fatal paralysis of their own state of denial. Traders commit such a mistake in fact not suitable for trading, the market will not tolerate their camouflage for too long. Eventually, the conversion time frame of errors will erode the trader's determination to deprive them of the ability to think and freedom of movement, they never dismissed as a tragic victim.

How to convert a time frame to eliminate the error

This conversion time frame fatal mistake is that it not be allowed to exist, must be thoroughly removed, because every time such an error would allow traders to reduce the level, once the habit formation, it is difficult to break.

1, if you bought a time frame, it must at the same time frame to establish your selling points

2, as more (empty) when the non-down (above) to adjust stop-loss (a city of point 1), this is your time frame for conversion to commit the wrong one of the main signal. Proper use of the case, an upward adjustment in income can be protected. But the downward adjustment of stop-loss will be meaningless, and will make you even more reluctant to do what you intended to do. Once you have taken this action, you will again and again three to do so, until the stop loss to protect you from disasters. Both of these methods will be very easy to stop the conversion time frame you have committed a fatal error.

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