Trade management is one of the most important aspects of trade. I will not say "more" important because that gong goes to the psychological side of trading. Yes, believe it or not, how your mind reacts and how he thinks, behaves and operates in markets is the most important factor that will determine your success, or not.
This is surprising for many operators, but really should not be. If we stop and think about it logically for a second, we know that trading really just about making really great decisions, over and over again. We have our plans and individual rules, and once we have a profitable business plan, just about keeping the plan and make important decisions over and over again.
Are our minds, including conscious and subconscious minds, which determine the types of decisions we make. We can have great plans, but we stick to them? Shall we go into a trade and panic? ¿We cut an operation before or we should allow a losing run for too long and pass our stopping point? These are all mistakes created from the mind, which can be eradicated if you spend time working with yourself and working on your trading psychology.
As I say, again and again, if you take the time to become a better decision maker and better psychological trafficker to work at it, you're going to put in front of the pack, no matter what method or system You turn your hand !
Why business management so important?
You've probably heard me say this; however, it is very true about trade management; without differential, anyone could flip a coin and pick winners 50% of the time, even a monkey could. Only a trained and educated trader, who has a plan and understand your business strategy, you can manage its operations over and over again to make consistent profits.
While entering the market position correct input is very important (because if we do not, we will have no ability to manage any benefits), is in commercial management where they are produced or lose all benefits, and this is where a trader can walk away from a transaction with a profit or other merchant can get away from the same operation with a loss due to business administration.
Traders often are so focused on finding their input signals and the "holy grail" of tickets, which are not realizing that it is actually commercial administration that is killing them and their commercial profitability. Or are leaving their losses for too long, not protecting their capital when they should be, or not taking your profits when the market puts at your disposal.
the key to becoming a Super Trade Manager
The key to becoming a commercial manager consistently good is to have a mindset that allows you to take great decisions without fear or any other emotion that drag, and also have a set of really solid, solid and logical rules that tell you exactly what to do , when to do and how.
This is the way to build your business advantage and profitability. Commercial advantage is so important, and hand with it is its set of rules. It is this set of rules is like an automatic machine and you are the person working on the machine by pulling the levers and emptying space money.
If you have a profitable business advantage, are these rules of business administration which will indicate when to move to reach the breakeven point, when you get your first benefit, whether to follow a track, if a particular configuration should be given a little more strictly than another setting, or because it is a trend, you should seek payment increased risk reward.
As just mentioned, its edge and its rules are like an automatic machine and all you have to do is follow the rules, continue to take excellent decisions, and while their advantage is profitable, will profit.
The secret then becomes to ensure that its rules are all set correctly and discipline is so strong that no matter how small a rule, Do stick with it!
Plan needs to have a different kind: a plan of precomercio
The "Pre-Commercial Plan" is something that can literally change the race of traders because it takes the most complicated and difficult part of the operations and makes structured, logical and methodized.
Without this plan precomercio, traders enter trade and often just expect the best. Many good traders have a good idea before entering the market what awaits them before entering, but the vast majority of traders enter their business and then think "Crikey, what the hell should I do now?"
How often sees traders posting on forums, asking complete strangers boards of trade while they are in the middle of an operation live, asking whether they should stay or leave their live trading? The reason why this happens so often is because they have no plan before entering their exchanges.
When we entered our exchanges without plans, it means that we will be likely to take really, really terrible decisions. It also means that we will be full of doubt when the price turns or flopea because we have no concrete plan in place we can continue simply, no matter which direction the price moves.
Precomercio plan allows us to have clarity and certainty of mind that we have to make an exchange. The best time to make a trading decision is when there is no money on the line, and that's before you made the transaction. This is important to note that, as a trader, make really good decisions is what you do as a career.
Before you performed the operation and before there is money on the line, you can first configure your full trade. Get the input and perfect stop level resolved. Then you can find out exactly where they will get the main areas to manage its operation. It is NOT necessary to reach half of the operation so that the price reaches exactly the same areas to solve it. You can work these areas before the operation begins, and then manage trade in accordance with a plan and rules.
Must have a trading plan, and this plan negotiation should follow exactly what your individual trading rules for trading method. These rules should cover from when you enter, to how it handles different markets, etc. The pre-purchase plan will use these rules so that each time you give an operation, an operation administered in exactly the same way.
Obviously, you want to manage your operations consistently over time because, as the trader is more consistent, more consistent your results will be. That is why having a plan and rules within the plan are very important.
A plan of
precomercio should cover the following: Where ⦁ plans to enter
⦁ plan to have many positions
First objective ⦁
⦁ If you plan to move to reach the breakeven point, where the point / price is
Second objective balance ⦁
⦁ ¿Third objective?
⦁ Any other applicable note.
For example, you may decide that after profit in the second goal, to use a final stop with the third and last position. Be sure to write this or anything else in your plan precomercio.
Your plan should be as detailed as possible. You want to make your plan precomercio so that if someone comes looking for, you can manage your operation for you without any instruction yours.
Look at the trap: the trap of different market
A big mistake many traders (nod your head if it comes to you) is to manage all its operations in the same way, regardless of the type of market conditions. If the market is in a strong trend, the operator managed in the same way that another operation is in a very tight and consolidated market.
So what is wrong with this? The problem is that if you manage exchanges in this way, is giving away many potential profits lost when the market is open and trending, and as I will explain in a moment, to look perfect settings higher risk for reward. On the other hand, you may be taking many more losses than you need because you are not driving close enough or protecting their capital at appropriate times in the markets, when you need it.
Not all markets are equal. We can browse our daily charts and, quite clear and obvious way, to see that not all markets are approaching the same and that is where you, as a trader stock price, earn your money.
It's your job to identify market rates and calculate if the price is in a strong trend; If price is making higher highs and lower. The price is running low or the price is stuck in a narrow box consolidation? Is there a clear range with high and low range obvious that can be exchanged in the middle or the whole picture is a big mess with traffic that is best left alone until you make a little space?
These are all questions that must constantly be made while compiling the history of the whole price action.
It is much more likely that the price keep doing what you just did. For example, if the price has been in a range, it is likely to continue to vary, and if it has been a trend, then it is likely that the trend will continue until something changed.
The reason for this is because of the way that the order behind it works. For example, if the price is stalled in a range, large know that the price usually does not go too far (ie, makes smaller movements). Normally, exchanges are at increased risk in the ranks. There are many more levels of support and resistance minor and major also know that it is much more likely that the price varies.
Because of all this, the big fish generally will not make an exchange within range. This means that when the price enters a range, the order flow can start to run out; In other words, the amount of purchase orders and sales may start to be shrinking. This is the reason why often see that the price begins to close more and more. This is the order flow action ever smaller price.
So what's up? EXPLOSION! A big break in one direction. Suddenly, this rope will explode because professionals have seen everyone else crowded and have waited for the rope and reach break and then jump.
Once you identify the type of market, it is important to recognize that there are better times than others to seek exchanges increased risk rewards, and other times when you must manage their operations a little more.
As I go in the next section, try to keep in mind what I just said about the price moves in the same way it has been moving. The best times to look for settings greater risk reward, and search operations running multiple positions are when the price is an obvious and strong trend.
The simple reason for this is because it is much more likely to continue backing the price in their favor and that there will be space on your part. The obvious trends are the times to look for great rewards exchanges of risk, not trade in ranges or against trend.
When operating in a range, a period of consolidation or some kind of settlement needs to be measured and more cautious. The price in these markets is far more likely to move and bounce. Often you can choose the right direction, but must stop before the price reaches its goals.
Obviously you must manage these types of markets differently. You will not be a hero in a tight market and search settings high risk rewards. You must respect the market rate.
See the examples below two different markets and how to manage them very differently. One is a higher tendency flowing freely and the other is a trading range and would need to manage more closely with more respect.
Here's where it personalities, you know what kind of operator and know what suits you. If you are the kind of operator who just likes the great rewards of risk, then you can choose to only negotiate market trend and ignore narrow markets, consolidated and varied. This may mean that the market is out for a while, hoping the exchanges because the market varies much more than brand, but they are all different.
Personally, I like profit and will change all types of market for them. I do not care what kind of market comes, as long as it is an overall gain, I'm happy with that. I regulate my business management as the market rate.
The crucial points for you crushing you and becoming a success
I know I keep talking about it :), but there are some things that are not negotiable to become a successful trader and this means being very disciplined with their rules and their plan. In our business careers, no one to take responsibility, but ourselves.
If you are in an operation that looks very promising and actually moves in your favor, there will be nobody ask you to adhere to your plan and get profits when its rules and directed plan.
You are the only one who will know if you become greedy and does not profit when your plan says it should, but seeks a target higher returns than your plan precomercio has scored. While it may work this time and can operate the following five times, this trade is guaranteed to not work in the end because you're negotiating against yourself, breaking their own rules, and once it breaks a rule, it becomes much easier to start breaking all the others.
As mentioned above, the markets, they all generally have no rules. There is no one to tell you when to trade, how to negotiate, what time should exit the operation, whether to leave half of the operation or all, whether to stop or how soon should be looking at, etc, etc. There are no rules except those that you put yourself!
This is the reason why the rules you create and trading plans that you create, including precomercio plan to manage their operations, are very, very important. If you lack discipline and you start breaking the rules, it's like a stack of cards and your whole business side crumbles.
Why? I ask this all the time. I ask, "Why are you so strict with such a small rule?" My answer is, no matter what the rule; a rule is a rule and once a rule is broken, where does it stop? It's a very slippery slope.
Keep this in mind when you're about to break your next period because all its commercial margin and profitability depend on it. Once you break one will be much easier to start breaking the rest.
