Who has taken my Profits?. For R & R Investments Forex This is the fourth article of a server where to look for a special kind of ideas in the foreign exchange market and create another way to see market, a more simple, not simplistic, and thus able to deal with the wealth of possibilities and opportunities the market offers us every day, just as better understand and manage our interaction with it. Much operate within the market has to do with how we deal with from time to consider a graph, we take time to make, buy or sell a particular currency, taking losses and benefits and not only that, but how we react to the results we obtained. seems incredible, but even when operating within the market is very simple and easy, stay in and managed over time is more complicated than anyone can undertake. And not only the fact but also the fact operate to generate profit and above all not to lose the profit incidentally can be achieved in a simple, sometimes enough to have a bit of luck when operating, but I think to be constant is that every operator pursues goal. Perhaps that is why every year new players enter the market to go soon, as well as operators with years of good returns ending in the same situation. Following the same trend of the first 3 articles of philosophical ideas of the currency market this time try to sow in the minds of reader my perspective on Profits profit or you get (and sometimes lost) in the market. First I would point out a point I consider important, as human beings our nature and society dictates the pursuit of success, however that search most of them, is understood as the accumulation of income or wealth or even power ( a primary), avoiding the most important aspects in my view as self-fulfillment or personal satisfaction. For practical purposes, the success in our society means profit, wealth accumulation, in general this is the "positive side" of life, being of the people winning because it gives us acceptance, third eyes and makes us admired and even envied, strangely for me many people are in envy causing personal taste. Here the point to note is that the above issues is quite understandable because in each of our daily activities we seek to be the best, and therefore avoid any issues related to losses and failures, or more specifically the fact of error which brings up the above concepts. An error brings negative feelings both within our own being as from third parties who know that we have erred, that is why we avoid at all wrong in any activity we conduct, and that does not preclude trading currencies, most importantly, operate within the foreign exchange market and wrong not only results in feelings of failure, frustration or rejection, but our errors are reflected in the decline in our stock and probably there is nothing more painful than being wrong and losing money in the process. is for this that operate within the foreign exchange market, an activity that involves the degree of risk and involves handling of money in speculation, can be extremely frustrating, because certainly we have to deal not only with the variables that exist within the market but also have to deal with our own personal variables (difiriendo de persona a persona), es decir, que aspectos tales como problemas hogareños, personales, etc. afectan nuestro operar al afectar nuestra concentración y nuestra disciplina y paciencia. En este artículo nos concentraremos en la cuestión de las ganancias o profits (como son conocidos en ingles), y de igual manera su aspecto psicológico (o filosófico) al momento de operar. Para ello quiero tomar como ejemplo la idea central del libro ¿Quien se ha llevado mi queso? escrito por Spencer Jonson, el cual recomiendo ampliamente. Para todos aquellos que no lo han leído no daré detalles del mismo para evitar su disfrute, para los que ya tuvieron oportunidad de leerlo can capture a greater extent the intent of my words. Broadly speaking the book Who Moved My Cheese? It is about change in our lives, change in labor issues, personal or in any area, the intent of the story is that the reader understands the way as we face this change and the different ways in how we deal with it and this short story (it is a book that can be read in no more than a couple of days) can learn to live and survive the change but above all understand how we can adapt to it. accordance with the above will begin to assimilate the knowledge that gives us the book and transporting the currency market, which is a changing structure, a structure that can change from night to morning, this led by the hand of ambition or operators fear or panic. Certainly anyone who is interested in the currency market is interested in the potential it offers, in short interest us make us a profit, so we still think that the profit is "our cheese in the market, what motivates us, makes us analyze charts, news evaluation, so sleep late. etc. Make the market potential and likely money will materialize in our bills, avoiding at all costs be another trader loses and leaves the market as many days to come day. Cheese is why we work and this mercado.Siendo cheese (profit) in order for everyone involved in the market we are in, is easy to think it of paramount importance over many things, from winning it, be consistent in your collection and keep it up to the fact. So we can understand why the fact of losing or of not knowing that we manage in times of "boom" can be very painful for any operator. The power of cheese. The power of cheese when operating often goes unnoticed by most operators. Sometimes I could be more important to be prepared to deal with Profits that obtaining the same, this may sound exaggerated, but getting something for which this preparation can not have consequences we can not anticipate, as I explain below: imagine ourselves operating a account, now imagine that we have excellent results within a couple of months, if the reader has had at some time will know for sure the prevailing feeling within us is the confidence and security, in fact, we even come to feel that understand the market and we are ready for any situation that comes our way, we tried it with two good months of results, is not it?, in fact it does not matter if a couple of months or a couple of years, as operators can even have a couple of days a couple of operations with very good results and feel the same way. Confidence can lead to many mistakes, that speaking in terms of reliance, first, can blind us to the floor and thus away from our work plan and our strategy and start making mistakes that will be reflected in the decrease of our balance sheet. Another mistake we can make is to remain attached to our strategy at a time yet to start operations that fall outside our parameters with which we operate, whether the amount of leverage that we operate within the market, the number of operations , etc. etc., ending with the same result as if we put aside our strategy. Enter more in detail about the effect of an attitude of overconfidence later in this article. Cheese Does size matter?. I would like the reader to imagine operating an account of your choice, however, believe that the reader can agree with me when I say that is more important to manage an account for hundreds of thousands of dollars to a thousand dollars , to be more practical, is more important to operate an account of $ 100.000 a $ 10,000? I guess the reader's response can be quickly and without much thought choosing the first option. Would the reader agree with me, if my response to that question would be a third option ... none of the above? respondents believe that the first option are influenced by the fact of the Profits, although these have not been obtained yet that does not matter, anyone can find a $ 100.000 account will give us higher profits than an account that only has 10.000 dollar question of proportions. But here is precisely where my reasoning goes to say that an account is not more important than another. Both accounts are handled the same way as a trader I have to do the same procedure to open surgery with either $ 100.000 account or with one that has $ 10.000, but purely and simply said, the two operate with simple mouse clicks. Although we imagine that a person operating the account of 10.000 with the most modern technical tools that a broker may offer and another account operator works with simple hunches 100.000, the operation process lies with the same basic concepts, however, say that after the first operation results in a gain of 2% on both accounts, that percentage is mathematically all but obvious is that 2% of a $ 100,000 account is much higher (in monetary terms) to 2% of account of $ 10.000, is that we can say that this percentage is relative, relative to what? can ask the reader, to which I respond, relative to the size of cheese, or better, relative to the size of the cheese that each of us see or want to see. The size of the profits will be important to the extent that the operator is important, the operator of the account of 10.000 would be very pleased with the result of 2% gain in the first operation and not the operator's account even when $ 100.000 in money terms the biggest gain was obtained by the latter. That is why the effect they can have the Profits on our operators feel is not given for their help sino por lo que se desencadenan dentro de nosotros al momento de obtenerlos. El modo en como reaccionamos ante las ganancias por lo general va de la mano por el monto monetario obtenido, sin embargo, como en el ejemplo de las dos cuentas de diferente tamaño podemos comprender que mas haya de si es una ganancia grande o pequeña o bien si esta misma es un porcentaje alto o no tanto así, lo que sentimos no necesariamente esta ligado a el rendimiento obtenido, ese enlace entre la satisfacción y el profit ocurre solamente dentro de nuestra mente y nuestro sentir, cuestiones que al mercado no le interesan pero que dentro de nuestra operación pueden hacernos perder la concentración o hacernos cometer errores de apreciación. ¿Cómo I found my cheese?. me start by "dissecting" the effect that can cause a good piece of cheese at the time that obtienen.Primeramente we must bear in mind that a profit is the result of an act that we have previously performed as open surgery is for a minute and a few hours or several days earlier, however, must take into account that the act of opening an operation could be due to different circumstances, could well decide to open an operation after a thoroughly studied or several graphs, evaluate important news conference of some character of the market, etc. etc. or maybe we could open operation only because of a hunch, a momentum that can not explain well or advice of a "expert" who saw or read recently. Whatever the reason for opening an operation, if the result ends in a profit, usually we tend to take most of the credit for the result, and here we illustrate with the following statements that may cross our minds but not externalize: - "I knew the market would react that way," - "Step knew exactly what would happen" - "I know the market enough" - "I'm very ready for open this operation " sentences as above and many others may cross our mind when we obtain a profit, usually the cause or reason goes to the background, whether the profit we obtained by an examination personal mode graphics or if it was just a hunch, here we care about is that it is as we take the credit for the result and in many cases justify our being the profit gained by thinking that in the end we were the ones that took The decision to open this operation in our own and nobody else so we deserve the outcome. For all the above it is important that we are aware of our reasons to open positions in the market as this way we see our actions more objectively and not get carried away and the luxury of getting Profits, which is that, being beyond our reasoning, we can say that even though each of our operations is the result of a conscientious review and a study in which body and soul and let all our concentration, yet we can be in the shadow of obtaining yields only by sheer luck or chance if you mean that way, that because no one, NO ONE in the market can know with absolute precision and certainty what will happen in it, so think otherwise would be to accommodate believe anyone can predict the future. Although the intent of this article is focused on the Profits should be noted that only when there is a reverse situation, ie counter losses are obtained as in the few times we Profits fully accountable for results when they are us side, and rather try to make you responsible for losses beyond our control issues. So far we have seen the way how we can get Profits from being lucky or sound analysis, but now I would like to draw attention to issues that affect the operation as much as anyone when getting Profits is that although you can pass unnoticed, getting a profit, or to fetch continuously can lead to some negative aspects. A piece of cheese every day ... believe, unequivocally that when we start some work, undertaking or project, we meet that goal in mind as best as possible and to realize the results that motivate us to work. Completing our project, we not only gives the benefit of their own work done but also gives us personal satisfaction and self-fulfillment to see our efforts ended. Trading currencies is nothing different, we established that the obtaining of profit can be very simple and the end is the goal of every operador.Si consider what we have discussed so far We can see clearly all that implies making money in this market, not only gives us satisfaction, but also increased the heritage that we deposited in our account so we can feel full and happy to achieve our profit target. However, should we feel that way? ... For all those who earn in one transaction or in a couple of them tend to be filled with euphoria can be very high, and that as not to feel euphoric? If just one click the mouse on our computer we were able to make us money, incidentally, the larger is the profit obtained exponentiation euphoria in the same (or greater) proportions. Speaking of euphoria, I cover the whole aspect of pleasant sensations that can be highly damaging to the concentration of an operator, either an excessive enthusiasm, a complacency, etc., etc. True our nature of being human can do that we get carried away by our feelings by acting in this or that situation, it is normal in our daily life many actions we take and decisions we make are to a large extent made by feelings that develop within us, and sometimes even those feelings act as "lubricants reason", it is understandable that the activity of operating in financial markets is not the exception of the influence of feelings in our life. We are not talking to act cool and calculating, here we talk about is to understand the negative effect that a positive result may have on our operation. How many times have we thought that "we understand the market" or that "we've done" when in fact they are not operating and a couple more, a couple of months or a couple of years shows that the market really were not prepared. We must be aware that it is very tempting to feel self pleasure for a couple of good trades or a couple of months of good returns, however, just as we must be aware that the more "high fly a" more Hard is the fall, and it is to lose in this market is something almost inevitable, and if at any time within our operation we are elated come sooner or later the operation to make us see the truth and remind us that while we've won something, we must be focused to continue obtaining the cheese market. I want the reader to imagine himself an operator or so operating in the market with euphoric attitude because he has been able to find cheese every time I want, however, come when you have to lose some of the proceeds as part the search process, however, the attitude of euphoria will give you a greater negative impact operator and will be more painful to change a positive attitude for a more peaceful to say the least operar.Si all this we add the point that a negative impact is greater intensity (about 3 to 1) as a positive, a couple of bad months of operations can leave us with an emotional deficit that can make us think that the market is dangerous and there is no way to make us a profit on it. "I can survive without cheese?. certainly is important to win in the market to stay there, you need to get more wins than losses to continue operating, it is a fact and I do not think anyone would be provided to argue otherwise. This is another aspect of why The Profits are so important for us as operators, and another point with which we have to deal with the emotional issue as well. Our operating system should allow us to make us profit from time to time, or as often as possible in the best, and obviously such a system also will result in us obtaining losses which, as in a previous article can be taken as costs to operate. I want more cheese, not a bigger ... larger. Following the issue of Profits gain this we need to know what time to close a transaction and make our balance increases, regardless of whether it subsequently to time having got off the market this goes much farther from our starting point. It is important that our operating strategy is designed in such a way that allows us to make us a profit as often as possible while allowing us to be in the market to take advantage of the opportunities it offers to go further in our favor of we had considered. Greed with the operations can be as bad as euphoria, anger that the market forever in our favor is a mistake that many traders can make, that is why from the moment of opening an operation is necessary that it be a starting point for obtaining Profits, also that this operation has sufficient range and space or lots to stay in the market if you notice that a chance of winning more points for us. The market can be very volatile at times and our operations must be flexible enough to adapt to conditions that can change quickly. Fear of losing cheese. Certainly no one likes to lose something that has received much less if it has been obtained based on hard work, stress, or pressure, the cheese can become very valuable when we won and the fear of losing may like the greed provoke euphoria or operate incorrectly. Suppose that after a couple of good months of operation or even think we've had half a year with good yields, now suppose that the next couple of months we lose a third of everything we've earned during the months of boom, the reader will agree with a server if the bad month make us afraid to go slowly entering the market, we still yields even want us in the cheese, however, fear of losing the hard earned and can make us be more cautious than necessary, make us think that any next operation will be continued slump and we could not open while operations with good opportunities for profit by the fear that it will not be as expected. Fear can be paralyzing, and doubly bad, because not only can lead to more losses but at the same time can make us miss opportunities to earn income. Who has taken my Profits?. I hope that through this analysis can to get my point of view on profits in this rapidly changing and volatile market is something that as we see it has implications that go beyond an increase in our stock or a run of good opportunities, has nothing more to do with the effects they cause in us and especially the fact that our mind gives thus can make it harder than it is to operate in this market.
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