Wednesday, June 7, 2017

This 3 mistakes that Limit your profits

Angap alone you can already earn a profit consistently and had graduated from Breakeven trader. Now saatnhya You trying to increase profit, because you know that your skills will be able to exceed what you already are doing at the moment. But in fact there are 3 things that limit your profits, among them:

1. The inability of market Conditions

To be able to maximize your profit to changes in market price, then you have to be more flexible as well as find out about how to set up the position when there is a change of the price movement. In this case, you cannot expect a big movement while low volatility conditions, as well as middle market conditions experienced sideways. It is certainly not going to go well. You must have strong reasons against what was expected and continues to plan the appropriate trading market conditions. For that, you must berdaptasi and adjust the market condition, not against the market conditions.



2. Position Size Mismatch

Errors that limit your Profit next is mismatch position size. Position sizing is the key element of risk management, which can distinguish between just acquire a small profit and gain a large profit. In these conditions, in addition to setting the reward or risk, you also need to know the time for trading on large lot size and time should do on tradeing a small lot size, in other words you have to be able to manage the position size.

When the market moves based on the direction of the predictions, and systems of trading you have hinted the signal through a high probability and potential reward is great, for it is the most appropriate moment increases the risk. In blackjack games, usually it is like you are betting with a number of great value when the card is in favour of yourself. But instead when you see the presence of uncertainty as when you're trading when the fundamental news release as well as the potential reward is not sure, then you can reduce the occurrence of risks by means of narrowing the trading lot.

3. Fear

Sign in with a buy when the price has gone up, or otherwise enter sell when the price falls will certainly make trading in accordance with the event or the momentum that is being etrjadi, but there is a drawback. In this case, you do not get the sell or buy prices are nice, especially when the movement of the ups and downs of the price can be said strongly enough. Generally you will enter a price level that reverses direction-prone. In this State, you may experience doubt and fear, with such a position you be not optimal. How trading like this is called also with chasing the market or hunt down the market.

The third factor which limits the profit above the obligatory note per trader. Although you may have been able to generate profit with routine from trading forex, however, does not mean it should be stopped to perform a variety of improvements.

1 comment:

  1. All 3 listed mistakes limit profits in trading. Emotional trading is also very harmful. Thanks for sharing valuable content.
    Haim Toledano

    ReplyDelete