The skilled trader knows that for carrying out successful trade it is necessary to supervise the finance. The huge number of editions, articles and books repeat about need of financial management. But paradox in what because of the wrong definition of an admissible risk level, is ruined, almost more than a half of traders at the exchanges.

The situation reminds a casino. Excessive self-confidence, optimism, belief in the good luck, especially it concerns beginners, desire to receive at once and much, leads to negative results as the market isn’t static. Because of sharp movements at the exchange, some traders, not able to tell itself “STOP”, as a result get not profit, and a huge loss.

When the beginner faces similar problems, to him the understanding of that it is necessary to choose strategy and some rules concerning restrictions in the financial plan comes. The classical method on management of finance can be an example of similar restrictions. Essence of such method in risk restriction (no more than 2% from own capital). It is necessary to limit itself at first to automatic feet.

Thus, if the loss also occurs, its maximum size won’t be such painful. To determine the size of the capital which he can risk, the trader defines independently, proceeding from the only criterion comfort. Loss shouldn’t cause desire to recoup, and the successful transaction won’t enter into a condition of euphoria and won’t force to feel false confidence of own superiority over the market. It can disseminate vigilance and further lead to undesirable consequences

January 22, 2013 at 12:00 am by master
Category: Статьи