Plan your trade and trade your plan: You
must have a trading plan to succeed. A trading plan should consist of a
position, why you enter, stop loss point, profit taking level, plus a
sound money management strategy. A good plan will remove all the
emotions from your trades.
The trend is your friend: Do
not buck the trend. When the market is bullish, go long. On the
reverse, if the market is bearish, you short. Never go against the
trend.
Focus on capital preservation: This
is the most important step that you must take when you deal with your
trading capital. You main goal is to preserve the capital. Do not trade
more than 10% of your deposit in a single trade. For example, if your
total deposit is $10,000, every trade should limit to $1000. If you
don't do this, you'll be out of the market very soon.
Know when to cut loss: If
a trade goes against you, sell it and let go. Do not hold on to a bad
trade hoping that the price will go up. Most likely, you end up losing
more money. Before you enter a trade, decide your stop loss price, a
price where you must sell when the trade turns sour. It depends on your
risk profile as of how much you should set for the stop loss.
Take profit when the trade is good: Before
entering a trade decide how much profit you are willing to take. When a
trade turns out to be good, take the profit. You can take profit all at
one go, or take profit in stages. When you've recovered your trading
cost, you have nothing to lose. Sit tight and watch the profit run.
Be emotionless: Two
biggest emotions in trading: greed and fear. Do not let greed and fear
influence your trade. Trading is a mechanical process and it's not for
the emotional ones. As Dr. Alexander Elder said in his book "Trading For
A Living", if you sit next to a successful trader and observe him or
her, you might not be able to tell whether he or she is making or losing
money. That's how emotionally stable a successful trader is.
Do not trade based on tips from other people: Trade only when you have done your own research. Be an informed trader.
Keep a trading journal: When
you buy a market instrument, write down the reasons why you buy, and
your feelings at that time. You do the same when you sell. Analyze and
write down the mistakes you've made, as well as things that you've done
right. By referring to your trading journal, you learn from your past
mistakes. Improve on your mistakes, keep learning and keep improving.
When in doubt, stay out: When
you have doubt and not sure where the market is going, stay on the
sideline. Sometimes, doing nothing is the best thing to do.
Do not overtrade: Ideally
you should have 3-5 positions at a time. No more than that. If you have
too many positions, you tend to be out of control and make emotional
decisions when there is a change in market. Do not trade for the sake of
trading.
Sumber Arsip : http://www.agea.com/index.ncre?page=re-trading-techniques
No comments:
Post a Comment