Strategy of investment and trade, trading psychology
Most of the traders rely on quick wins. Exchange they see as a casino. And this is the main mistake. Examples of unexpected success, of course, there is. But the exchange is first of all a serious work, and not a game of chance. And this work has its own laws. The majority of private players lose their money because of the fact that they do not follow the rules of capital management. The game at the stock exchange requires special training. Here it is important to know and apply the principles of planning and risk management. The most difficult moments of mostly occur after the first of several successful transactions.
The beginner's an impression that he had understood all the subtleties of the profession, and then he begins to unreasonably increase the size of contracts, ignore the rules of management of own capital or to trade on a whim. As a rule, it is a bad ending. You can only advise to treat each new transaction, as the first and how to be the largest in the last, say, a month. Beginners are encouraged to make the first transaction only on the part of the assets in the account. The main danger of losing their head! As a rule, the first òðåéäû the beginner are successful, and have very many begins to head dizzy from success. As in any other profession, in trading, it is important to learn how you can better understand and feel the market and, as a consequence, it is better to trade. After that, return and come!
Another serious error " newbies often in the course of the movement of the market are starting to change strategies. And it is also not recommended. The most important thing is to have built the trading system and strictly adhere to his plan. Experienced traders, one day developing a strategic line, strictly follow it in all situations. What exactly you cannot do this trade, in General, with no plan, guided by some of the emotions. This is a direct path to financial collapse.
As for a choice of optimum strategy, then there is no ready-made recipes. Experts advise a novice to begin with the most simple methods of stock trading, described in the books, and in parallel to the study of more complex strategies, choosing the one that best suits his nature, level of preparation. Novice traders are not worth it at first do a short sale. Experts do not recommend to take out loans - have to play only for their money. It is important not to be mistaken with a choice of broker - cheap Commission does not always mean quality service.
Experienced traders are advised to enter into a special register of all data: when and why was promoted trade, and its results. He who does not learn from past mistakes, is not immune from their repetition in the future. There are three components of success for beginners - conservatism, discipline and constant studying of the market. For the novice trader is most suitable for the strategy of working with the shares of large companies, as well as the most liquid securities and the player always they can realize on the stock exchange.
It is recommended to read the best books on technical, news, fundamental analysis, and most importantly - on the methods of risk management. We must strive to develop their own methodology of making trading decisions and not try to guess the market, namely, work with its decisions, and open positions. For absolutely every ruin of the trading account are unreasonably large trading positions. The work of the catastrophically large values of open positions makes the majority of traders from well-educated, analyzing, sober-minded people in a dull, faceless, ïàíèêóþùóþ crowd inability to make adequate decisions.
Trading - for those who know how to control their emotions, not amenable to the euphoria of the first victories or panic after the first failure. An experienced trader never, even in the case of the largest lose or win, does not give the power of emotions, does not allow fear, greed and panic moods influence decision-making. Trading is the fate of those who are able to constant concentration and discipline. Because the error or lack of attention to detail may cost too expensive.
Experts recommend first of all try their strength on the virtual exchange. Almost all brokers provide their customers with a chance. For the study of clients of Internet-trading brokers create on the basis of real trading system special «demonstration» of the program. Connect to the demo-version of may each. Enough to fill the mini-application form or register on the website of the broker, download the program to your computer - and you can begin to trade. Brokers shall be calculated on the demo-account of the client of a certain amount - from 10 000 up to 1 million. $. Training trade is almost a real - in the real-time mode. Bargain is possible at any time, but not on the real exchange quotes, and according to their peers, somewhat different from the present prices. After working with virtual money, you can not only develop your own trading strategy, but also test it in practice.
According to brokers, less than half of the users of the demo-version of the then continue to trade shares for real. This is a kind of psychological test on the strength of many understand that it is not ready to work on the stock market.
