Читать книгу Investor, trader, player. Greed is bad - Sergei Riazantsev - Страница 7

Most people will probably answer the question of what is the most valuable thing in trading – money. This seems obvious. The larger the size of the trading account, the greater the profit, the better. For example, 1% of $1,000,000 is $10,000-a pleasant amount in all respects. However, we will try to show that there is something much more valuable. What we almost do not pay attention to.

In fact, money in trading is not a unique, renewable, secondary asset. They are an effect, not a cause. Working material: a bricklayer builds a house out of bricks, a baker bakes bread from flour, and a trader seeks to multiply money. The attitude to the material (stone, flour, money) should be professional. And a brick wall, and a freshly baked loaf, and a bundle of money are only the result of the right actions.

It takes time to learn these actions. It is our most valuable, unique, non-renewable asset. Paradoxically, it is time that a novice trader values the least. Hours, which make up days, weeks and months, are spent on hypnotizing the price in the trading terminal. To search for and copy other people’s trading systems. To the endless monitoring of news reports, in which there is nothing new in a couple of minutes.

Real trading experience cannot be replaced by anything.

Let’s explain with an example: let’s say your trading system is based on following the trend. If you are not taught by experience to ignore volatility (“market noise”), if price fluctuations excite you to a cold sweat, if you have not developed the skill of patience – this strategy will not bring you any benefit. Time will simply kill this trading system. If experience has not taught you risk management – similarly – your deposit is doomed.

Experience is born only out of time.

There is such a mathematical action – multiplication by zero, which zeroes everything, and the value of the second multiplier does not matter at all. One multiplied by zero and a million multiplied by zero are no different in the end. So, the skill of wrong actions in the market, lack of experience, inability to trade – this is your “zero” in the world of trading. If you have a million dollars on deposit, but you don’t really know how to trade, it’s only a matter of time before you go broke. It’s like a wall built by an inept bricklayer, without cement mortar. It will inevitably collapse, no matter how many bricks it takes.

From other side, if you have ten dollars in your cent account, but you know how to trade, developing this skill better and better, then increasing your trading account and making a profit is inevitable in the long run. Learn how to make a dollar out of ten dollars first. Then ten dollars out of a hundred, then a hundred out of a thousand dollars, and so on. Everything else will come in due time.

A key skill in trading is the ability to melt negative experiences into positive ones. Get back on your feet after bumps and falls. Learn every day. Have you leaked the deposit? It doesn’t matter. Consider this your payment to the market for training. An inexpensive payment for invaluable experience, investments that will definitely pay off in the future.

Recommendations:

– Novice private traders, as a rule, do not have much capital. And there is not the slightest reason for despondency, fear, discontent. Because you have something much more valuable – time. Spend your time wisely and the money will come after him. You don’t have to worry about that.

– Trading is impossible without constant self-education. Read high-quality professional literature, instead of mindless nervous monitoring of the price in the terminal or reading anonymous articles on the topic “How to get 1000% profit per month”. One book a week is an absolutely real task – if desired. Fifty books a year (well, let it be twenty, or at least ten) is already a serious theoretical basis. One hundred books read are already expert level. Your capital, which is always with you.

– Set yourself real goals: first, survival in the market. If you don’t lose money for three months, it’s not bad. The first, the most important and difficult step, you have made. Stability in the long term is of critical importance. By analogy with chess, a child can also take someone else’s pawn. But winning the whole game is quite another matter. It’s the same in trading: to accidentally catch a powerful trend and take 10% of the deposit is about nothing. It is much more difficult to consistently show a result of 2% profit on a monthly basis.