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Regards, Yondy Jeonardi
CEO Sinar Rezeki Group
-----Original Message-----
From: [email protected]
Sender: [email protected]
Date: Tue, 19 Apr 2011 15:52:32
To: Saham<[email protected]>
Reply-To: [email protected]
Subject: Re: [saham] Trade Smarter NOT Harder
Keren juga posting yg ini ..
-----Original Message-----
From: positif01 <[email protected]>
Sender: [email protected]
Date: Tue, 19 Apr 2011 15:30:28
Reply-To: [email protected]
Subject: [saham] Trade Smarter NOT Harder
When I first started trading I believed the best way to improve was to
become more skilled. The more I could learn, the better I should perform.
The result was a very large library of trading books, and a moderate
increase in trading success. We all need to master the tools of technical
analysis. Understanding how they work and when they are best applied is an
important part of developing the skills of trading - in theory.
When it comes time to put this theory into action in the market we discover
many unexpected psychological barriers to our success. We do not have much
money when we start trading, so we take a lot of time to decide on each
trade. Often the first trades are easy and turn into effortless winners.
This is poor preparation for the inevitable losses because we do not know
how to react. When losses do come, most times we just hold on and hope. The
result is a trading portfolio littered with long-term investments in the
vain hope that, given time some of these fallen stocks may rise again.
The market provides the most expensive self-education course available.
Standing knee deep in blood from losing trades, we are easily distracted by
the promise of trading systems developed by other people. These approaches
may work very well for others, but unless they match our growing and
changing understanding of risk, and our appetite for risk, the systems work
poorly for us.
Some people buy an expensive promise of trading success delivered by black
box trading systems. Typically these are priced at an attractive $3,000 to
$8,000. You might be told there are only a few licensed copies left so you
need to be fast. It is a sure way to a small fortune for the promoters of
this software, but rarely a successful solution for the private trader.
The novice trader needs money management skills to survive, but he is the
very person who is least likely to develop them. Instead, he concentrates on
chart analysis and trading skills, believing they hold the secret to
success.
Money management requires knowledge and an understanding of the way losses
impact on capital. Applying money management requires discipline and this
difficult for Trader Novice and Trader Average to develop. It is part of
what keeps them from becoming Trader Success. It is not a lack of charting
and analysis skill. It is a lack of the discipline required to effectively
implement money management strategies.
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