When affairs at you go well, you feel perfectly. But, when the black strip of losses comes, your life can turn into a nightmare. It is possible to earn money for weeks and to lose everything in some minutes. This situation repeats again and again, traders of all generations met it. Therefore everyone should understand such opportunity and to be ready to break game. Rational supervision and logical conclusions will allow you to find answers to necessary questions.
In this article we intend to consider only one question: “Than the successful trader differs from the loser? “.
The following 11 supervision help me not to lose a right way. You can group these supervision in the table and use it as a criterion of success of the trader.
Supervision No. 1
The largest number of losers are in group of intra day or short-term traders. The reason of it at all in the squeezed temporary framework, and that many of such traders are deprived of good preparation and a game deliberate plan. This type of trading doesn’t forgive even minute mistakes, manipulations in it are most risky whereas the losses caused by a lack of knowledge and preparation, increase repeatedly. Besides, these traders very often have no sufficient capital. Successful traders, generally trade in medium-term and long-term time spans.
Trading in medium-term and long-term time spans provides a high probability of success from the statistical point of view. The same can be told and about capitalization. The more seed capital, the is more opportunity to survive.
Supervision No. 2
Traders – losers often use difficult systems and methodologies and are guided by recommendations of the guru and “black boxes”. Successful traders, on the contrary, use simple technicians. All of them use or the modified versions existing the technician, or the systems invented by them is independent.
Exist wrong opinion that “difficult” means “best”. However it isn’t obligatory so. It is logically possible to prove that simpler technicians usually happen more practical and less subject to false interpretations. Actually important not that, “simple” technicians or “difficult”. Important that, it is possible to make money by means of this system or it is impossible. From here it is possible to conclude that the most important role in the course of trading is played by your own thoughts and the analysis. These can explain why often traders who possess only two qualities – persistence and patience, achieve bigger success, than educated super – intellectual or even geniuses.
Supervision No. 3
Traders – the loser often lean on computer systems and indicators. They don’t waste time on studying of a mathematical basis of these systems and consider usually “pop” option of their use. Successful traders understand advantages of use of the computer – such, as possibility of the fast analysis of a large number of data and many markets. However they often don’t disdain to draw schedules on paper, using such outdated tools, as a pencil, a protractor and the calculator. They try to study the mathematical principles of averages and ostsillyator, and can draw, in case of need, them independently, without any computers. They understand the market mechanism in all smallest details.
If you want to achieve success in any field of activity, it is necessary to understand the principles of functioning of all mechanisms involved in this sphere. It is possible to hammer nuts with a hammer, but it not the most practical exit.
Supervision No. 4
Traders – losers spend a lot of time, analyzing where the market will appear tomorrow. Successful traders spend more time considering the reaction to how to react to the current movement of the market and respectively plan the strategy.