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Friday, December 25, 2009

2 Traders Make Mistakes - Online Trading

All dealers are subject to errors, especially for new dealers. The desire to make money quickly and to exploit the perceived opportunities for almost anyone can enter the market and trading without regard for the things that succeed or not. Anyone can give an order and we hope to see him get thrown making money. But a true professional takes the time to assess how trade can influence the way if it goes against them. Even if you are a follower of trends,with a high probability of success, there is no way to know if indeed the main trend is about to undergo a complete reversal or retracement important. From my experience as a new, professional traders, there are two major mistakes, make the dealer.

1. Trading too

One of the operators is to make mistakes, too many parts, land or contracts to trade. This is particularly true for inexperienced operators. Many new entrants to enter orders, with an optimistic attitude, how much moneythey can do whatever the worst case, because forgiveness. Some merchants do not even have time because your account is the amount of benefits, consider the act affected them. For example, the purchase of 1000 shares of stock means that if the title is moving $ 1.00 you can increase or decrease your account of $ 1000. A dealer who does not know could lead to very unpleasant surprises, if the trade goes against them for $ 1.00 or more. The figures may bemultiplied for larger orders. The point is to ensure that you have the math on a worst case scenario, when trading. Take time to discover how your account negative effects if the prices go against you, frustration, and you can save money by getting the order to fit your comfort level.

2. Not locking in a profit

The vision of an increasingly lucrative trade is one of the best feelings that can make all distributors, whether to accept. TheProblem is that dealers who are not willing at times, made a profit, because we are, the more you see a market before it reverses. I personally can testify that in the trading in foreign currency, as I have seen increase in my account to include more than 600% from the inversion. I could also win, because I have actively managed and the ship moved my stop to lock the profit. I think it is a skill and an art form, able to move the stops to block the profits. Ifare too narrow, you get shut down prematurely, but if they are too big, really do not lead to blocking much of a profit. This goes back to my previous article concerning to know the market, as the experience of a given market can help make decisions when you move the stops and it should be moved.

There are some errors, make the dealer, but I think that trade is too big and not locking in a gain on the main issues, all ofThe parties should pay their attention to financial reporting.

I hope to become a successful trader if you trade currencies, shares, or commodities futures trading.

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