Category: Money Tips Date: 2005-12-28
Stocks in the market at different stages of psychological change is different. Clear understanding of the psychological journey stocks can avoid detours.
Beginning stocks of psychology: the beginning of the transaction when the fear is that this time will come down to buy.
Solution: Set stop-loss, each transaction losses of up to 5% of the total funds withdrawn their determination to implement.
There was a time the stock market: With the stop-loss, do not worry about down, and to worry about is not profitable, but also a continuous stop-loss, stop a 78 back, a chunk of his savings have gone, and saw stop-loss not see a profit is the time most worried about.
Countermeasures: To improve the success rate of operation, to look for fluctuations in the critical turning point, that is the greatest volatility may be running for some time according to current trends in a number of entry points. (This is the heart of all technical analysis, each of the methods are different, can be found in ten rounds of 67 critical turning point, is considered a relatively successful)
After continuous losses: improving the success rate, do not worry about straight stop, and they begin to worry when you earn less profit, in particular to miss the big move. Fee plus a 2 stop difference, once the cost of stop-loss to be higher than the theoretical calculations, so if the profit was not enough time to win is still insufficient to cover losses or small profits can not be sure whether the long-term profitability.
Solution: Try to make a profit when the profit to expand, if they can get the big fluctuations, then the small stop-loss injuries are also not Jigen slightest.
Learned to wait: start successfully captures some large fluctuations, are not afraid when you earn less profit, but also there are more caused by waiting for turnaround in trading. These losses affect not only mood transactions, but also a waste of time and energy, the effectiveness of the overall deal there was a marked negative effect.
Solution: use "never let a profit into a loss," the motto, when profits dropped back into the price of the position near the open positions.
Less loss of trade: but missed out because of a tie a big market reports more comprehensive comparison, it seems not as good as those who miss the big movements with stop-loss to a Bo.
Countermeasures: to abandon the "no profit to loss" motto, instead using stop loss to broad fluctuations. Further research to improve the placing of stop-loss point and at the same time to find out from below the purchase price and profit in turn can continue to wait for certain conditions. (Note: The condition of more, the system becomes unreliable, and have a trade-off problem)
Most of the specific issues addressed: The next concern is that their methodology can be useful in the end how much, how long?
Countermeasures: the system implemented in the past decade, the history of map simulation experiment to validate the changes made since the adoption of systems in more than 50 transactions, to be able to interfere with free market, a stable implementation of the system level.
The implementation of the system can be stabilized: the results of the overall transaction is statistically positive, then do not worry about how the results of a single one transaction, but has the confidence in the overall win on. But there are still new problem is that once the market is worried about some kind of a change in the nature (such as periodic changes in the operation of the main style changes) result in shares of a sudden change it to system failure
Responses: no response to this, and the stock market is an ever changing place, there is no way you can Changsheng undefeated, especially in technical analysis is a copycat operation, only the market can do is to keep the fear mentality, check the operation of the system at any time, when multiple transactions abnormal results appear to confirm the emergence of new shares after the change in the special need to re-establish a new strategy.
Only the above-mentioned transaction is to establish a systematic method of technical problems faced by the psychological barrier, while the actual operation, ever closer to the market subject to a variety of other factors influence the more, such as market sentiment, the major access , the message of the shocks, and the prices run the see-saw, can make a trader can not afford to abandon the use of psychological pressure, after careful study of the system, so if the operation can maintain a kind of ambiguous on mentality, more attention to the system and less attention to the market, it will is conducive to the stability of mind.
