There are four basic principles, which should be part of any торговой стратегии. This:
- Trade trends
- Reduce losses
- Let's grow profits
- Manage risk.
You have to be convinced that, что Ваша торговая стратегия включает все эти нужные для успеха принципы.
Trading trends refers to the definition of the rules for opening positions. This requirement means, that you are obliged to constantly open up in the direction of the existing price movement.
Mathematical analysis of prices shows, that prices change mostly randomly with a small trend component. This scientific fact is extremely important for those, who wants to base their trade on a rational scientific approach. It means, that any attempt to trade short-term figures or methods not based on trends is doomed to failure.
A good example of such a doomed system – Japanese candles. This theoretical conclusion is based on my pre-research studies.. Many years ago, when candlestick analysis came into vogue, I tried to create a profitable trading system, candle-based. I tried a lot of options completely unsuccessfully.. I also haven't met anyone., who would be able to demonstrate the effectiveness of candlestick analysis using strict rules. Successful traders use methods, giving them a statistical advantage. This advantage comes from the tendency of prices to form trends. In the long run, you can only make money by trading on these trends.. Therefore, when prices are on the raising тренде You only have to buy. When prices are on the downside тренде – only sell.
Although this important principle is widely known, traders surprisingly often they are neglected. In search of additional profits, they try to buy at the very bottom and sell at the very top before., how the new one will be installed trend. Успешные traders learned to wait until they receive confirmation of new education TrenYes before taking a position in accordance with it.
Here's what he said. Jake Bernstein по поводу моей Books “The Four Basic Principles of Trading”:
“Of all the basic principles, I put 'Trade on trend‘ to the top. It's a lesson., which I have to teach and retrain every year. Everything traders have ways to find trends. The more upsetting, when we go against the trend or try to catch the very top or the bottom.”
Alternative to following трендам is prediction. It's a sin., into which almost everyone falls traders. They study the problems of trading and draw a conclusion., that to be successful trader we must learn to predict the market. There is no end to those who want to sell you their latest discoveries on the prediction of the market. We all want to think, that prediction is possible – it's so nice, make a prediction and be right.
Here's it again. Jake Bernstein with a small portion of sober realism:
“I needed more 9 years for that, to understand, that although it is very romantic and carries a great charge of self-gatience, however, prediction is not an indispensable attribute of profit. Anticipating trends is a difficult and risky task and leads to more frequent losses., than profits.”
Trade by trend heavily, since the logical point of exit is far enough and in the case of, if you are wrong, can bring big losses. This explains well the fact, that there are so few truly successful traders. Not many can bring themselves to trade in such a psychologically difficult manner..
You can define trend only in relation to specific time frames. When you determine the trend, it could be, for example, two weeks interval, or six months or hours. Therefore, an important part of the trading plan is to make a decision about, what time interval to choose. Although, probably, psychologically it is easier to choose this interval shorter, better results are given by trading at longer intervals. The longer you run trades, the greater the profit can be.
When you trade along such a long trend, you really follow the market, and do not predict it. Most losers spend their entire careers looking for the best way to predict the market.. If you can develop discipline in yourself and start measuring trends in the average- and long-term time interval and always trade only in the direction of the trend, you will take a huge step towards profitable trading.
Bruce Babcock
