How to begin trading usually people?The man opens the schedule of the terminal sees the price, for example, goes up.He buys, but the price is set and goes down.Rather, he closes the position with a loss position and opens up for sale, but the price turns around and goes back up.It turns out this unsystematic trade.
price or actively growing up, one sees the trend is up, decides to buy, buy.But the price starts to go in a horizontal channel, and then turns down, then jumps up, and the man, through all these jumps, lost, can do anything.This is typical haphazard trade.Trading system - a set of rules that strictly regulates all actions on trade and eliminating subjective assessment of a person.
This means that if we have our own profitable trading system, we do not feel any emotion when the price moves down quickly, no action was taken, if the price goes to the horizontal channel or came up.We are in a time, when the price is at each point, we know what to do, because we have a trading system, and it is clearly regulated, rigidly fixes all the rules of opening and closing positions, etc.Roughly speaking, it is like a job description, following which we will, in any case, we will make a profit on a series of transactions.
That is what the trading system.
What are the basic rules of the trading system?
1. Regulation opening position.It regulates the conditions when you can open the position: that is,if the one condition that we buy, and if - the other, then we sell.
2. Rule of closing the position.If we have strict rules for opening positions, then there must be rules when positions must be closed, because we get the profit at the closing position.If we are somewhere in the open position, then sooner or later we have to close it.And also need to close a position, guided by certain conditions.If all these conditions are satisfied, then we close the position.If either condition is not met, we will not close our position.
3. The rule of money management.That means we need to manage capital?This means we have to limit losses.If we at some point have sold, but the price went up further, it makes no sense to allow our losses increase.We need at certain levels to close the position at a loss in order to continue to enter the market with a different price movement, for example, to buy or to wait, etc.But, in any case, we need to manage their capital and limit losses - the primary goal of capital management.
4. Rule Management stock in psychology.The first three rules completely determine the trading system itself.We need to set yourself a certain way.It is necessary to cultivate a correct outlook on the trade of trading systems, in order to be able to adhere to the rules of the first three and get the result in the form of profit.
These are the components of a profitable trading system.
on materials training video Anatomy of trading systems.
