Anyone who has been trading for quite a long time, perhaps a period from the period meets together with big wins. It is important to understand as well as how to overcome together with these winnings in such a way that they do not in any way negatively affect your trading strategy and upcoming operations.
In trading, everything without exception is dependent on the probability, and the trader can meet with a series of deals, that are not according to the project, that can cause significant losses, or with a series of deals, which all without exception will win, and certain of them have all chances to be suddenly impressive. Income can be increased by sudden novelties or events. For example, the merchant has just acquired the event, and soon after this company suddenly, but successfully acquires a recommendation for a takeover. Or, for example, the trader holds a short transaction according to the currency unit, if suddenly bad news about the state economy leaves and the currency unit drops.
Why could unexpected big wins be a problem?
For what reason do big wins – or several wins – have all the chances to be a question? Just as this is in no way improbable, all without exception, the problem in psychology. The result or failure in trading is largely dependent on this, what is done in the mind of the trader, not on the screen of the PC, and in this case, as big wins affect his understanding, can form real difficulties for future transactions.
Overconfident traders make mistakes
First of all, in general, a large grateful operation can force the trader to feel irresistible – as if someone has finally learned “this commercial business” and can rightfully claim the role of the ruler of the world. This is a serious way of thinking. Of course, it is important to have a positive mood and trust in their ability to explore the stock exchange and make the right trading decisions. However, the feeling that they do not have any chance to make a mistake, can cause the most painful arrangement to the selection of subsequent trading abilities and withdrawal of transactions, which they usually do not make.
Big wins can lead to trading too much
Another threat after a great success or a series of wins is the temptation to rapidly increase the volume of the operation. This is again associated with excessive self-confidence and an acceptable feeling that the trader has solved the riddle of the trade. Trading activity in much larger sizes than it existed before, can cause traders will give the acquired stand out a significant income, including more.
The right approach to dealing with big wins
What is the right aspect to conclude the difficulty of sudden gains in trade? First of all, in general, it is important to understand that this share of the move. Most traders, perhaps period from period meet together with big wins or trades that give income much sooner than expected. This is constantly welcomed, however, it probably does not mean that they have any clairvoyance and constantly become fair. Be grateful for the income, but in this period is equally as important as ever to follow the trader’s project and find the right aspects of the presence of the withdrawal of the operation. Re-read the principles of trading, in order not to be interested in euphoria with this, as well as successfully passed past operations.
It is attractive to think about increasing the volume of operations, and there is nothing wrong with it. On the verge of increasing the immeasurable trader will want to sign the largest operations, but the presence of this someone must be convinced that creates this by the reaction to risk management, and not count in this case, that the big wins will last. Most of the high-class trader’s risk only a small component of their immeasurable according to one trader’s thought, for this reason, increasing the volume of the operation, do not forget to follow the characteristics of the notch, preset by your trading project.
Large winnings are in no way an issue if I am in no way engaged in stand-out. I must keep in mind that periodic losses are inevitable for all traders, the key is to reduce their volume with the support of careful risk management and maximize profitable operations.