Guide to Build a Trading Strategy Part III

 

Many people make the mistake of adding or decreasing the size of a position simply because they feel that something is going to happen good or bad thing. These two actions, if they have been carefully planned ahead of time, can be very useful as part of a trading strategy. The essential condition is that the trading rules to be written before it is inserted into a position.

Making trading on an emotional way, however, lead to disaster. It 'amazingly easy to be misled by their emotions, even without realizing it. We must be able to be aware of what a trading system does and how to trade as he says the system could keep us away from emotions and make you able to earn money.

If emotions are able to affect the system in the least degree, the whole strategy could be invalidated. With the creation of a specific trading plan, which includes when to enter a location, get out when and how much leverage must be used, you will be free to run its own position without the fear of emotions.

The benefits of this way of trading are far reaching and once you've learned to respect the plan, you are free to start experiencing the emotions that come with being a successful trader, but without entering them in the same trading

Emotions are not an enemy per se, but they can become when you allow them to influence its strategy. The objective should be pursued is not to turn into machines or to remove emotions from the human spirit, but to create a lifestyle that can promote a sense of inner fulfillment. Only then will you be able to operate in order to be successful in this market and you will have the opportunity to earn money.

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