Trading Rule 1 Decide in advance what counts as a loss in each of the planned transaction. Under "choose" means the following: determine what to do or be a market where all the transactions have been exhausted - at least in part of your trading period. Unless otherwise come to the losses, the possibility of losing is not threatening to respond with pain. The most successful traders have changed their views on the loss, losing a fortune, and even a few states. Having lived through the most terrible fears losing, then they realize: we simply do what is necessary, and then there will be nothing to fear. But what should you do? Assume that the possibility of error is not excluded, and therefore recognize that loss is not completely avoided. Thus, to admit and accept the inevitability of loss - is a commercial science. Of course, most difficult, it is given, but without it does not lay the foundation, in fact, just what you need to know to become a successful trader.
Asses the current market (and there are relatively few) learned the hard way. Do you have a chance to make the journey easier. This will help two components of the inner world. First - your understanding of why it is important to admit the possibility of loss. Otherwise, you have a fear, but eventually you will come to what is just avoiding. Really mastered the concept of it, you will not be able to trade on the basis of the previous installation to avoid losses at all costs.
The second component - this is your willingness to change their ideas about what it means to "play." This can be done with the help of some of the psychological exercises. I'd rather loaf than to come to the same conclusion at the cost of a full or nearly full market devastation.
The conclusion is: "The loss did not detract from me (ie you) as a person." The sooner you realize this, the easier it will be seen and to stop a losing deal. Stop loss trade automatically, as part of the trading strategy - so be prepared psychologically for the next chance, even if it falls in conditions similar to this unprofitable deal, from which you just came out. Trading Rule 2
Stop loss trade, barely revealing her. When the criteria for loss determined in advance, and losses are stopped without hesitation has nothing to ponder, weigh, measure and - consequently - nothing to be seduced. In addition, there will be threats to bring yourself to extremes possible - before the crash. If you happen to find yourself that you are considering, weigh or evaluate something - it means you either do not have predetermined criteria for a loss, or do not repress it, hardly revealing. If the second case the transaction will be profitable, you will only be strong in its wrong approach that will inevitably bring you to ruin. If the deal is, on the contrary, it will still losing money, then you're in a vicious cycle of emotional pain, which is difficult to get out. Let the loss take its course - a big mistake. But there is another common oversight - is to abandon the next had the chance, which invariably leads one way - to win. After such blunders happen before people angry at myself, it's easy to commit a new trade or mass missteps misstep - for example, enters into a transaction on the advice of another trader, which invariably leads one way - to lose.
Take yourself on a note the following: achieving full confidence in their ability to prevent the loss, you will eventually reach and to the point where no longer need to define the criteria for loss. Is it possible to achieve such a high degree of objectivity? Yes. And it has achieved. Entering into a transaction, such traders rely on their ability without any criteria to notice when it becomes unprofitable. The market itself will tell them this time - rather, they would understand, based on in-depth knowledge of various market participants and the various relationships between price movement and time. How could they have learned so well-versed in the market? The fact that the terms of their focus expanded by increasing the volume of undistorted information. They became keener, but first learn to trust yourself. Remember that fear - it is really the only thing that prevents a person to learn new things. After all, how to know more about the behavior of the market, when fear: what not to do what you want? suddenly do something that is not necessary? He who learns to identify the criteria for loss and prevent it in the bud, open to the development of the best ways to make way for profit.
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