Risk management and capital preservation – the key to success or failure

One of the most important and most ignored components that becomes a successful trader or investor is risk management. As a trader or investor, retaining capital prevails. Regardless of whether investors or potential movers in the coming months or years to come, or a day-to-day trader who would like to capture small daytime fluctuations for quick profits, must complete a plan. You need to plan how much risk you take each trade before you enter, know how to properly use your downtime and know when to make a profit. There are times when you are dealing with trade and things are not going to plan. And you need to get out of this trade and look for another opportunity.

Do you know that your own risk tolerance is psychologically? How much can you afford? Do you risk too much risk on the basis of total capital? Will you give yourself a chance to trade another day or try to hit your home in every trade? You must have a predetermined plan and know your limitations based on the amount of invested or tradable capital.

After you enter a trade if the market is against a predetermined risk amount, then go out! Loss. Accept that you will be losing your investment and trading. Losses are expected and investment and trade business shares. Think of the losses as part of the business cost. Every business has a cost. The key is to handle the loss to be small. Most successful investors and traders have a regular and often smaller loss. Understand that taking small losses is healthy for you. This will allow you to think more clearly about finding new opportunities on the road. If you are insisting on a commercial loss, you may find it difficult to think of new opportunities. The memo of Jessie Livormore's shareholder memories told everything. "Loss of money is the least of my trouble, loss will never regret me after I get lost, but if I'm wrong, I will not take the loss – it's the pocketbook and the soul's damage." [ElcsodálkozikhogyolyansokemberakipénztszeretnekeresniatőzsdénvagyakiknapikereskedőkakarnaklenniezttervnélkültervezikAmialegtöbbetnemvesziészreezegyüzletEznemmásmintbármelymásvállalkozásamelyprofitotkeresNemtudszülniazülésszélénéspénztkeresniBárabefektetésésakereskedelemkockázatosnemjelentiazthogyaszerencsejáték-gondolkodásmódnakkelllennieAlegrosszabbdologamitbármelybefektetővagykereskedőtehetmaradegyveszteskereskedelemmelabbanareménybenhogyvisszajönésgyőztesévéválikEzahibahalálosSokkereskedőbefagyaszthaveszteshelyzetbenvannakAztgondoljákhamégnéhánykullancsonmaradnakapiacontalánmegfordulTanuljmagadnakaleállásokhozhogysegítsakockázatokellenőrzésébenAleállásokhasználatahosszútávúkereskedelmisikerhezszükségesTanuljmegtesziaveszteségedetMindigvisszatérhetszamikorapiacmegfordul

investment and trade based on probability. Work with a fixed dollar amount you want to lose badly. Depending on your total account size, you can count on 3-5% of trading anywhere. For some, this is very conservative, but it's best to be more conservative than too aggressive. Learn how to use shutdown if your position moves to your benefit to better manage your risk. Get profitable along the way at predefined points. Yes, you have to learn the profits as well. This effectively controls the risks and gains. Do not forget to invest or trade to earn money. Learn the Cashier.

It is a common mistake for inexperienced investors and traders to trade without a predetermined amount if they lose badly and do not plan to profit if they are correct. This type of activity usually results in an investor or a prosperous and prayerful entrepreneur, which ultimately fails. Think back to the bull market when a lot of warehouses ran straight. Many people have caught the idea of ​​not doing so badly.

I remember talking to many investors who asked for advice when the stock market rose higher. I suggested taking a profit along the way and using stoppages, but greed prevented them from furthering the market. One hundred percent, 200 percent, 300 percent and more was not enough. If they were profiting from their profits they complained that they had to pay taxes on profits. I often wonder why so many people find it easier to hang out for a loser and have a tax deduction, not happy to pay taxes for profits. The same people want a 10 percent return.

Traditionally-minded traders know that using a number of simple, effective techniques would save many investors in returning most of their profits or preventing them from going red. Most importantly, we learn how to handle our investments differently than a daily trader. To become a better investor

To better prepare yourself as a trader / investor

· Understand how to read a table properly to view the most important levels of resilience and support

· Understand and identify the trendy market and trends failure.

· Understand that trade and investment are no different from other businesses.

· Check your costs and maximize your profits, otherwise there will be no business. ] · Be flexible and adapt to current market conditions

· Learn and accept the fact that it is okay to be mistaken and lose the loss.

· Learn about profits if you are profitable. If it is wrong, quit your situation.

· If it is better, weigh it down and use stoppages to continue locking the profit if the move continues for you. as its upward potential.

Source by sbobet

Leave a Reply

Your email address will not be published. Required fields are marked *