If you read interviews with top traders Tevin Coleman Jersey , one of the common factors that you will find stressed repeatedly is the idea of not losing money. In Sport lingo, you have to be able to play great defense. Whether forex trading, stock trading, or doing trades in commodity futures, the bottom line is the same.
Yet too many beginner and intermediate traders are more interested in playing great offense first. They are more focused upon making lots of money in the markets, and not nearly interested enough in keeping the money that they already have!
However Austin Hooper Jersey , the latter is critical to your success. Although it is obvious that in Trading, you have to risk money in order to make money, the idea is to control that risk so that it is always strictly limited and so that you remain in control of the situation at all times. In other words, we are talking about what the investment banking industry calls Risk Management. It is just as vital for the private trader at home as it is for the major investment banks.
The reason that investment banks regard risk management as essential is because without it, they would go bankrupt extremely quickly. It is at the heart of both their success and survival. Hence, if it is good enough for them Deion Jones Jersey , it should be good enough for you too.
Beginner traders have no idea of how to manage their risk, even as a concept. They put on a trade according to some poorly defined criteria, and when the market goes against them, they have no idea at what point to get out of the position and will let it worsen until it is simply too painful to retain.
The smart trader, however, places risk management at the heart of the entire trading plan from the very beginning. If you realize that in this game Keanu Neal Jersey , the target is not only to make money, but also not to lose the money you've got, then you have made great progress before you even place your next trade.
Let's put this a little more graphically. If you were to lose, let's say for sake of argument, half of your trading capital, then you have a huge uphill task ahead of you. You will have to achieve a fully 100% return Takkarist McKinley Jersey , simply to break even! You will have to do even better than a 100% return to actually go into profit. Now, if you realize that very few of even the sharpest hedge funds make 100% return on capital in a year, never mind all the other more mediocre players out there, you will realize what an outlandishly monumental task this really is.
Yet, if you were to ask many beginner traders, you will find that it is actually very easy to lose half your trading capital Alex Mack Jersey , or more, quite swiftly. You do this by placing too large a trading size in the first place, betting on ill-defined trading opportunities where your chances of winning are low, and then staying in the position for way too long when it is clear that it has gone against you and is not coming back anytime soon.
By contrast, the successful trader is very careful indeed about the sort of trading opportunities that are pursued and has done diligent research to identify high-probability trade setups. This trader clearly defines the risk in absolute dollar terms ahead of even initiating the trade, and places that limit as a stop loss against the position at the same time that the trade itself is placed. Hence Vic Beasley Jr Jersey , the trader has predefined exactly at what point in the market that the trade is a loser and has placed the exit order at the same time as the trade itself.
Another key aspect to this procedure is to limit the capital exposed to any one trade. Even following all of the above strategies would be absolutely no use if your trade size is far too large proportionate to your account size. If you enter trades where your potential loss represents one-third to one-half of your total account size, then you are almost certain to go bust within just a few trades!
By contrast, great traders ensure that their loss is not only predefined, but also small relative to their total account size. In this way, they ensure that they stay in the game. If a great trading opportunity comes up, but you cannot take advantage of it because you went bust Devonta Freeman Jersey , it is as good as if it had never happened. That is why you MUST play great defense, and ensure that you do your very best not to lose money.
You need to stay in the game. Remember, there will always be another trading opportunity, but only if you are still in the game! Games > Game Genres > Gambling > Online GamblingSweepstakes: A Modern Way of Gambling
Posted by Car0224 in Games on July 12th, 2016
Lotteries, gambling Calvin Ridley Jersey , casinos all are the most entertaining yet shortest way to earn some money. Many people often try their luck at casinos in a hope to become rich overnight. Nowadays, the latest way is online sweepstakes games. Sweepstakes are basically lotteries which are free to enter and commonly known as prize draws in many countries. Many people who cannot go to casinos and does not want to spend money on lotteries are getting attracted towards this new mode and trying their luck.
Let’s know more about sweepstakes games available on the internet:
Prize: With every game, there is a different prize depending on the sponsor company. There are various prizes available with every game like cars, vacation, guns, cameras Julio Jones Jersey , bikes and kitchen appliances and gadgets. But in order to achieve the highest prize a person must be knowledgeable and lucky enough to win.Economics: Many people think free online sweepstakes games are nothing but a spam, but they are unaware of the fact that these games can make a person rich overnight. These games are real which are sponsored by business companies who receive promotional benefits from the sweepstakes. People who give the game a try automatically join the mailing list wh. Cheap Jerseys OnlineCheap Jerseys From ChinaCheap JerseysCheap HoddiesCheap T-shirtsCheap Adidas NHL JerseysCheap NFL Jerseys OnlineCheap MLB ShirtsCheap T-shirtsWholesale Soccer Hats