In evaluation to
how long, cash and energy invested by some investors on Currency trading
spiders, error-proof specialized strategies, and quasi-magical forex dealing
programs where we are guaranteed to be created super-traders, it is a bad that
control gets inadequate attention. Although almost every investor ought to have
the name is aware that achievements in Currency trading is mostly reliant on
cautious control of failures, as well as income, this aspect of dealing is
somewhat ignored in personal preference to signs or symptoms, research,
research and technique. Yet the first issue confronted by a beginning investor
is taking a reduction while dealing, and technique or research doesn't say much
about how to deal with it. As such, research and exercise of control methods
must be extremely important in the mind of the investor who is dedicated to
achievements in dealing Currency trading.
What is analysis?
It is the recognition of high possibility circumstances for income. Probability
does not include any confidence, and by description, any analytic situation,
however strong it may be, will lead to failures earlier or later. In the
situation of the starter, whose abilities are not developed in best cases, and
pristine in the toughest, failures will come a lot prior to income. It is
clear, then, that any trader's education must begin with a good understanding
of the significance and requirement of control techniques.
Money control
instructs us how to manage failures, and how to increase sales. It all
purchases us growing a accountable and regimented mind-set to dealing by
obtaining reliability in our routines. We are trained not to be intermittent in
trade sizes, to be constant about the access of stop-loss or take profit
purchases, and above all, to respect reduction as a natural, and indeed,
inseparable part of a dealing profession. There are many ways of handling
reduction, but there is no way of preventing it completely in a dealing
profession. Even Henry Soros has had a number of serious, sometimes large
mistakes in his long profession, but he is still considered as a expert
investor by many. Warren Food bought the stocks of an oil company at the
optimum of the oil percolate in 2008, and he created wrong choices with Salomon
Bros in the 1990's as well. But all these investors were quick to identify
mistakes, and mange failures instead of doubting them and allowing them to
fester and achieve huge ratios. What happens to those who do not take failures,
and choose to add to them with the hope of ultimate profits is apparent in the
situation of Chip Leeson and Jerome Kerviel, one of who broke a U.K. bank, and
the other lost $7 million. Both went to prison gradually.
So control is the
heart of dealing, the safety device against mistakes, and the protect against
worry and irrationality. Currency trading dealing agents may give you the tools
of specialized research and hundreds of signs or symptoms, but control
techniques can only be obtained by persistent and individual exercise, and a
total investment to achievements in dealing. On the other hand, a expert of
control is a expert investor, and it is but a matter of your energy and energy
before he perfects his abilities in research and technique and develops the
great money which he should get.
