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Thursday, March 10, 2011

The main rules in the management of risk

Before entering into the actual tradingThere are some basic rules that must be followed literally before the actual trading, namely:The first rule: Do not trade real money by training and long practice.The second rule: invest the amount you can afford to lose entirely.The third rule: the start of trading a mini account.We will explain these rules are very important:The first ruleNon-trading real money before the training and actual practiceYes .. "You can not risk your money in the field to understand something in it ..!!Must first be in this area through trading virtual Demo you can open an account is a placebo and then buying and selling of currencies with this account if you win will be added profit to your account and if you lose will come off the loss of your account, where it is all the processes in terms of procedures and how to implement the orders and exchange rates and all that regard to trade like a real account but it does not contain funds if lost you will not actually lose anything.The default account is the indispensable need to learn how to trade currency prices without suffering a real loss, where you can practice and gain experience and test your expectations and learn a lot a lot about the movement Alosar and nature without losing anything.And after they have exercised the default trading for the longest possible period, when I became confident of the health of your expectations and your understanding of price movements and influences that affect them, and only then you can start trading for real money.How is the period that you must exercise at the expense of default?As long as possible ..! In fact, for a certain period can not be determined, but the issue depends on the link to trust yourself and understand the nature of the market and the accuracy of your expectations.Flaini to achieve profit in a few deals that you may become fit to trading real money, these findings may be the result of coincidence and no more, and can not be denied only after that recompile the practical results of ongoing profits for a long time.In short .. Only you can decide when to move to the actual trading, if you want specifically, we say you should not begin before the actual trading six months from the trading account by default and to demonstrate the practical results that improve your style and months behind the month.In the end it's up to you alone.Snrushdk addresses brokerage firms allow you to open an account for free by default, and most of these companies allow you to do so for a period of one month, but we recommend that you renew it several times.Cents and that even experienced traders have always had the virtual accounts are testing out new methods of forecasting and trading, and learn without a lot of them to suffer the loss.Valhassab default need for a professional imperative for the novice.The second rule
 
Investment amount that you can afford to lose completelyOne of the basic rules to avoid the negative effects of speculation in the currency risk.When you decide to start trading and determine the actual amount of your account open tags must be able to lose this amount in whole, without affecting your financial position.What does this mean?This means that You can not in any way to trade Astdntha funds for this purpose.Or be traded funds represent a large proportion of your savings.But for only $ Atbdo that lost entirely will not affect the financial position significantly.As we said, speculation on the currency investment with high risk, the put all your money in this field is very crap no doubt.Yes .. It's great to be locked in this area profitable, it is necessary that Do not waste yourself a chance to material gains big and fast can be achieved in this market, but the mind all the mind requires you to let the temptation of these profits Tamik the fact that speculation in the currency with a high risk may cause Bouksartk for the entire amount in your account and quickly.Has achieved some of the millions behind the speculation in the currency market and other markets ..The bankrupt some of the behind the work itself ..!!So it is advisable for people wishing to start trading real money to ask himself the following question:How is the amount that I can dispense with him in exchange for the experience of going into this area?The answer varies from person to person depending on the circumstances, objectives and potential of each person.The third ruleStart trading a mini accountIn the table that we have mentioned in the account page the normal and mini-account see the main difference between a mini account and a regular account.As you can see the mini-account is a tenth the normal account in everything.It is the main rules that you must follow to avoid the ill effects of speculation on the currency after practice on a virtual account to start trading the actual counts minimized help you to avoid heavy losses and bring you good profit to be able to market currencies and you can inflate your capital so you can then go into the trading account normal .It is very important both novice that withholds the actual trading only through a mini account first, even if the results of the exercise of the default account for a long time is excellent.Why?Because there is a difference between the trading account and the account the actual default ..!!Many of the novices achieve excellent results at the expense of default, but when they move to the account of an actual loss or suffering to the same level Aihakqon excellent victory in the default account.Why is that?Answer: the psychological factor .. Which is one of the most important factors that influence the success or failure of the shops .., Shops that used to trade the account default knows that he will not lose anything on the truth and this makes it a high degree of mental calm and patience and the ability to bear the temporary price changes.For example: if we assume that you bought 1 lot of currency on the basis that the price will rise 100 points.As you know the nature of price movement that the price will rise once more connected.But will rise and then fall slightly and then return to high and then falls over, then rise again, and so for the moment beyond the moment.Yes .. Eventually, after a few hours you will find that the price has already risen 100 points, as expected, but are in most cases gradually.For stores account is the issue is not affect him much, he is when he sees that the exchange rate began to decline will not be afraid of anything as long as he is confident of predictability and the reason for this is because he knows that even if true expect it will not lose anything so it Sisber that the price rises to 100 points as expected.The stores account for the actual story has a completely different ..!!When you buy 1 lot of currency and the price begins to fall, it will see that it is losing from his account for every point of $ 10 per regular account to $ 1 in the mini account, and that with time will cause him a lot of tension and fear of the increased loss was rushed and sells a loss, but If patience is a little back to the price rise as expected.Valmtajrp in the financial markets is a war of nerves in the first place ..!!$ 50 and lose a lot of easier to lose $ 500 in one transaction.Therefore, the actual beginning of the trading account must be minimized even calculates the test yourself and see the impact of price movements on your stamina and strength of your temper and this avoids a lot of losses that you may experience that began directly to calculate the normal.You also need to more practice and experience, and mini-account earn you less risk and at the same time, profit potential is quite good.Beware!Then that you start trading the actual counts Normal Standard account whatever your results in the default account is excellent.This may lead to evaporation of your account within days!!Do not start trading a mini account only the actual Mini accountRemember that always!!In fact, there are a lot of experienced traders who are content to work at the expense of small profits all the time and great flexibility to account for the Mini to make it very attractive, especially for beginners and owners of small accounts.
 
The main rules in the management of riskAfter logging in actual trading.Now, after that I practiced trading on the ground, using an account by default for several months, for example, that you have the minimum experience and having developed a method of trading depends on the particular method in the analysis of price movements and demonstrated to you this way its effectiveness results of the good in the default account and a relatively long period.We are now ready in principle to the actual trading.Applying the new rules you specify the amount of money to trade him and you choose a brokerage firm and opened an account with a mini to start your journey from now on in the real world of speculation on the stock exchange of international currencies.Through practice that you have made in the previous period became aware of the good nature of the movement of exchange rates and thus became familiar with the nature of hazards at work in this area, how can you reduce these risks to the maximum extent possible?There are a lot of rules that must be followed before and during the log in a transaction, including:The first rule: Use the order reduction of the loss.The second rule: do not lose more than 2 - 2.5% of your account in one transaction.The third rule: based on the analysis of entry and exit.The fourth rule is: do not fall in a deal unlike Mel Price.The fifth rule: do not trade at the times and circumstances are not appropriate.We will explain in some detail the rules for this very important.
 
The first ruleUse the order reduction of the lossOne of the main rules in the shops alwayes trade with stops. We've talked in the types of orders for order reduction of the loss stop order and explained the basic rules in dealing with him, in fact, of all types of command is ordered reduction of the loss is the most important and necessary.Why?Is because the reduction of the loss is the main line of defense in protection.Do not expect a true all the time. Has made the effort required in the analysis but the going is what makes the price movement in Amaakcetk start where you start to face the loss with every point Ieksk the price. This is something expected in the market very volatile as a market currencies.Here comes the role is to reduce the loss and which will serve to close the deal before the double loss to a large extent.Placing an order reduction of the loss prior to entering into the transaction is a recipes shops Pro, After analyzing the supermarket price movement of a currency and decide on the basis of this analysis is to enter into a deal selling the mother of Hraoua determine beforehand the point will be closed then the deal in case of loss prior to entering into the deal and that that says, for example: "I think that the euro will rise shortly after so Sostraeh price as well but if you did not rise as I expect I will shut the loss of the deal at the price as well as"This is because the selection prior to the exit point loss pious stores from falling under the influence of psychological "in the hope of" return price later.And commitment is often the difference between the shops successful and unsuccessful.Decipline Discipline and strict adherence with data analysis and ignore the psychological effect is one of the most important success factors in the speculative stock market and thus one of the most important causes of income and the high that comes with this success.
 
The second ruleDo not lose more than 5% of your account in a single packageWhen you decide to engage in a transaction will determine the point at which it will enter a buyer or a seller of a currency. Will determine the point at which then emerge in the case of Aaksk price and suffered the loss.The amount you can lose in a transaction must not exceed 5% of your total.What does this mean?Suppose that you have a regular account by $ 10,000 and decided to enter into a transaction, it means that you can calculate the price that will emerge in case of loss should not exceed the loss that occurred about 500 U.S. dollars which is equivalent to 5% of your overall total.For example: if you had bought 1 lot price of £ GBP / USD = 1.4500 on the basis that the price will rise shortly after So where is will reduce the loss?Put him at a price of GBP / USD = 1.4450.And so you set your loss of $ 500 USD which is equivalent to 5% of your account.What if you bought 2 Lott?If the price to GBP / USD = 1.4450 be your loss here $ 100 because you have 2 lot and not 1 Lott and this amount is equivalent to 10% of your account so you have two options: either to be closer to the point of exit in case of loss rate: GBP / USD = 1.4475 and either do not Lott originally bought only one.We have stated when talking about something that reduction of the loss that you can not put it too close to the price of logged and 25 points are very close to the point logged on may not be if that place is reduction of the loss at a price of 1.4475 is not left in front of you but do not buy more than one lot one.If you have difficulty in understanding the previous example, remember the following:You know that the size of the loss depends on the number of points and lose on the size of contracts (lute), who enter it.The more points you lose more than the amount that you lose $ 0.10 for each point in the regular account and $ 1 for every point in the mini account.The greater the number of contracts bought in a deal the more profit in the case of increased profit and loss in case of loss.When you enter a deal that you put point loss so you will not lose in this deal more than 5% of your account.On this basis, choose the number of contracts and the price will put a limit order of the loss with him.If you buy for 2 lot will make you lose more than 5% of your purchase is not two, but Lute Lute Buy one.If the price you will have is reduction of the loss will make you lose more than 5% of your account - that happened - you bring the price of the entry point more.That not less than the difference between the entry price and the price reduction of the loss for 30 points as we have.Why should I do that?Commitment to this rule Sijbarak not to rush in to buy large amounts of the contracts the hope of a significant profit.Yes, when you buy a 10 lot will give you enormous profits that have ratified your expectations, but in return will cause serious losses if you believe your expectations.If you entered the large size of contracts has not ratified the expectations may lose all your money will then be able to even get the chance to make up for lost.But if he has committed not to lose more than 5% of your account, it means that he will remain in front of you the opportunity and wide to compensate for the lost money and will protect your state been hit by several successive losses.
 
The third ruleNot included in the deal unlike Mel PriceMel Price friend shops Trend is your friend I have mentioned the tendency for a price that the main rules which will hear frequently in the analysis of all financial markets.It is often observed a significant cause of success.How bound by this rule?That are not included in the deal against the trend, the tendency of the price.How so?When you analyze the chart of one currency will be one of the most important goals is to identify the price tendency of the currency of any general trend of the exchange rate movement.Is the exchange rate is moving upward up trend? Downward or down trend? Or that the price is almost does not change the side away?When you reach for the answer to this question analyzing the graph and in multiple time frames must take you as to enter the transaction in the direction of the price and do not pertain to the opposite.For example: if we assume that you found that the inclination of the pound is heading for the rise. Is assumed that all your transactions on the Egyptian pound is a pound to buy, not sell it. This is because the general trend is the rise of the pound, even though the pound is currently down at any moment return to rise. So always make sure to enter the purchaser of the pound, not a salesman.You if you sell the pound will be in your best interest to drop the price more and that the opposite tendency to the price that is in high probability of occurrence is less than likely rise.When the price of one currency miles miles uphill in Uptrend sure to be a buyer of this currency.When the price of one currency miles miles downward Down trend sure to be a salesman Lhz currency.Because the likelihood of continued price movement with the general trend of greater likelihood of adverse he is the general trend.The obligation to enter in the direction of inclination trend ensures that your transactions more successful than losing your position, but said that this tendency is a friend of the shops.What if both sides of price-mile side away is not any upward or downward?Do not trade in the currency can not know whether going up or down tendency.If the currency was being pursued by the same tendency both sides wait to begin to determine the direction of price movement up or down because the tendency profile means that the market is reluctant to raise or lower the value of the currency and demand equal to supply, and usually it is because Aestmr long quickly determine the market trend is the movement of currency.And even determines the market trend, wait for the trade and the tendency of the profile.The fourth ruleRelied on the analysis of entry and exitAs we have said, it is necessary to have reached to a method of analysis has proven successful in the trading account by default and before the actual trading.Is based on "intuition" in your decisions when buying and selling would not only lead to loss after loss, even if the truth of this intuition in some cases.Human nature imposes on businesses to fall prey to the psychological effects before and during the entry in the deal.The most prominent psychological feelings facing shops are: Fear Fear and Greed Greed.And are far more enemies of the agreement of all stores!!Greed has paid stores to enter the deal before it had studied the market and by rational analysis to prove the safety of the decision.It may be a successful trader in a deal, but it does not close the deal and get the profit greed of more profit even though the analysis alerts you need to close the deal immediately what the result will be?The result is that after becoming a loser that you are a winner. So simply!Could push the fear of entering shops in a deal despite the fact that all evidence indicates that her analysis of the chart confirms the safety of the decision to enter.May enter stores in the deal after a long analysis, but what to enter until the price-adverse he is in them and give them the fear of increasing the loss to close the deal early in the loss, although the analysis does not refer to the need to get out what would be the result?The result is that the price back in the direction of profit, even if the patience of some stores to become profitable thing, rather than losing out unnecessarily.This is what we mean when we say the need to rely on the analysis of entry and exit.This is because the psychological effects are the greatest enemies of all stores and to make these feelings a basis for buying and selling decisions for you is a suicide in the area of ​​speculation in financial markets in general and in the currency market in particular.What should I do?Commit analysis when assure you technical analysis of the chart by knowing the tendency of price and points of support and resistance, and during follow you to the data, indicators and compare yourself all of this on more than one time frame, if found that the currency will rise do the purchase and if found it will fall Sign sell regardless of the "feelings" about it.Not running behind the hope of profit opportunities, but Mark opportunity come to you and let the analysis is that confirm this for you.When will be included in the deal and began indicators suggest to you that the price movement began to walk towards the counter you then get out immediately even if you were "feeling" that the price will return and go in the direction profitable for you, as this feeling often is the result of conflicting feelings of fear and greed and not a form of Cruel understand the future! .In fact, the strict adherence to rule the previous question is not an easy one at all, we are humans and we have difficulty separating feelings of fear and greed during the course of the deal, so we say the need to practice for as much time as possible because the practice is the only one capable of training shop approach to hearing what he says analysis and not what you say his own feelings.The fifth ruleDo not trade in the circumstances and times are not appropriateChart analysis and follow-up currency charge a lot of time and intellectual effort and patience.If you were not fit physically, psychologically and intellectually for trading it is better to not trade on that day.Do not trade and you are sick or in the case of psychological or intellectual is normal, it may lead you to incorrect decisions and hasty.If you close the deal and losing it is better to leave the trade for a few hours so you can restore your composure psychological and intellectual not resort to the method "will not leave the trading day even redeem the lost!"That may bring you more of the loss!Because it may motivate you to enter transactions in a hasty and impulsive.Of loss in trading in the stock market is a fact that inevitably, no matter how your abilities and experience.No one can be expected to believe all the time.And when you realize that the loss in trading is normal and inevitable which is the price to be paid between now and then it helps you to accept this loss.Lost today?
Yes ..

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