Smooth trading rules
We often ask ourselves the question: Are we doing everything right to trade at a profit? And if something goes wrong, what can we do? And it's not just these questions that we ask ourselves. But in order to answer all the questions that we may have, we should carefully consider some aspects of trading.
Every trader understands that stable profit starts to appear only when a trader clearly presents the general picture of the market and how the market will behave at this or that moment. In general, the task is quite difficult, because not every trader will be able to understand what will happen in the market not what will happen in the long term, but even after 15-20 minutes. This is complicated by the fact that the market depends on many factors. Any news, even unforeseen ones, can turn it around. And not even at the moment this news is released. The pitfall is that most traders expect the reaction of larger investors. Any minor impulse, and the rest of the community gets involved in trading.
Very often, especially after a series of losing orders, a trader starts to doubt his approach to trading. Some immediately look for the reason in their trading system. They add something. Something is taken away. Not a very competent approach. First of all, you should look for the reason not in the system, but in the market itself. More precisely, what made the market behave unpredictably. After a while, the system will show a positive result again. Secondly, if the system takes into account several factors, it means that the trader has simply deviated from it. In most cases, this is the main reason for failures. Many traders do not understand the details of the analysis. Take, for example, technical analysis. Who said that technical analysis is carried out in this way. Or maybe it is carried out in a different way at all. But one said, and everyone proves that this is how it is carried out. I can't agree with this, because the trader chooses the way it is carried out. Some people use graphical tools. And some do not even look at the chart without indicators at all. But many traders doubt that this analysis is necessary. Especially those who work on breakout systems. I can assure you that there are many such traders. A breakout can take place once in several days. Or there can be several breakouts in one period. Then what does technical analysis have to do with it. Moreover, no indicator will be able to confirm the breakdown, as they are lagged. And the Grail hasn't been invented yet.
Most beginners consider several losing orders to be something out of the ordinary. Here they are wrong, because a loss order, even if it is not one, does not mean anything. Maybe, when opening such an order, some factor acted as a driver and the price is simply corrected. In such cases, the stop-loss is not the decisive instrument. Many people know that a stop-loss highlights an order. Especially if there are many stops at this interval. Often stops bring the trader out of the market and the price goes in the assumed direction. Here, of course, everything is designed for the trading system. But many traders simply do not use them. They simply do not limit their trading range. Well, the drawdown will reach 20%, so what of it? We are participating in the contest. The trading is in our own interests, based on our belief. But a few orders knocked out can take more than 20% of the deposit. It's a lot to think about.
Many novices have their orders opened with worry, fear, and doubt. It happens that the trader is confident in the correctness of his decision. But when opening an order, the confidence disappears immediately, and the trader feels a great fear for his deposit. Or there is a doubt that he or she will close to the profit. These feelings are felt by those traders, who have not yet learned to control themselves. If the trader is sure that the price will go exactly where it is intended, why should he doubt. Many people say that the best cure for such feelings is turning off the terminal for an hour or two. They just open an order and move away from the monitor, even without turning off the trading terminal. The more we look at the open order, the more we worry. So why suffer if you can just not look at it. After all, if the market is aimed at downward movement, we will not be able to turn it anyway. We must get rid of these worries and fears.