Читать книгу Binary Trading - John Piper - Страница 13

Partly this is a result of an age-old problem facing traders who choose to spread bet or trade futures – the problem of mastering two very different skills. In fact I would say they were opposing skills:

 cutting losses is active and disciplined,

 running profits is relaxed and passive.

 Yet traders must learn to do them both concurrently. Not surprisingly, many fail.

This is one of the principle reasons I now use binary bets fairly exclusively. You do not need to cut losses, it is all in the price if you trade carefully, and you are free to concentrate on running those all-important profits.

This is particularly true if you trade at low prices. If you buy a binary at 10 the downside risk is strictly limited and the spread takes care of a good chunk of your risk straight off. But you have 90 points to run all the way to 100.

Anyone who has been trading for a while will know that it is not the entry that makes a trader – it is the exit. It is all too easy to make a fuss about entry with a zillion books, software programs, and gurus galore telling us all about entry. Entry is important but exit is a lot more so.

Consider three traders...

They all enter at the same point but the first one gets out because of a small pullback which gives him a small loss. The second grabs an early (and small) profit. But the third hangs in there and bags a big profit.

You won’t need me to tell you which one is the successful trader of the three, but they all entered at the same price. It would have made no difference if the third trader had got in at a worse price – he would still wipe the floor with the others as far as the bottom line is concerned.

The worrying aspect is that traders tend to repeat these behavioural patterns over and over again. Yet is the difference that large?

Yes, in terms of profits. No, in every other sense.

It is much better to develop winning habits; not losing ones.