This results in having the odds in favor, ie, to calculate and guarantee more than 51% of probability. As this may seem difficult enough to think that many professional traders do not have specific information or unknown, just manage to maintain a calm attitude towards money and detached, professional traders do not care if they lose, the important thing is to cut your losses and let your profits run.
SIZE LOSSES AND LET PROFITS RUN
This is the great rule of trading, cut your losses means to establish, before you invest, how much you’re willing to lose in order to maintain that position.
The concept of loss totally changed from a small trader, who may have just started, and the big professional traders who come to invest 300 million dollars in the market: while the former are afraid of losses, considering them as something extremely negative and unacceptable, the latter accept them as a part of the game, the only important thing is to reduce them to the maximum, cut, uproot them as they arise.
HOW TO EARN THE ODDS
Trading doesn’t mean make easy money, trading means to study and understand the market, you can’t understand it if you don’t know, like you couldn’t understand a woman without even having spoken at least once.
To understand the market there are two types of perspectives, one is called technical analysis and the other is called fundamental analysis. Both perspectives offer interesting points of view, and if you use synergy can lead to impressive results.
The activity of a trader is a bit ‘like gambling, but with the difference that the odds can be calculated with a minimal margin of error. To start trading can be a great opportunity for improvement both in financial terms and in terms of training.