A skill that matters

For many there is no doubt that money management is one of the best skills to develop to be successful in Forex. If I had to choose between an operator who had money management skills but nontechnical and one with excellent technical knowledge but without proper money management, safely I give my money to the first, always. Perhaps it is inconvenient for those who wish to convey knowledge of Forex, express this view. However, in all circumstances, we prefer an operator with sufficient technical knowledge and sufficient knowledge of money management. All we prefer, in the first instance, to achieve excellent technical expertise to develop the ability to predict market movements. This would be the ideal and good work on it. But the truth, the truth is that talent is not what produces profits in the long term. That honor belongs to development and skill of money management. It is a simple strategy to be successful: manage your account, your money, so to be able to withstand losses not let him out of action. Losses being part of the business, you must handle so that we can recover and move forward. New entrants care how much can earn; advanced traders deal as can lose! Successful traders take minimal risk and keep your losses small. They know reject transactions that threaten large amounts of capital no matter how promising the transaction. They cut losses planned way in advance. Operators generally lose, they risk more than they should, let losses run in hopes that prices will rebound and there is the beginning of the disaster. This is not to operate to operate nor seek "the business of life", the operation that you become rich. These are operations that produce losses than gains so making equal amount of winning-losing operations, the result is positive, for example. The secret is to perform only the operations that have a high probability of success. Losers operators do not have enough patience to wait for the opportunity and they begin to risk without discretion, on exposed and do not know where to go. Winners operators are patient, waiting for the opportunity of easy gain, conserve and care for the capital. When that time comes, they take advantage. Point. This is the plan. You can not control the movements of the market. You can only control your emotions. You need to be disciplined, patient ... have control of your attitude and your account. And this is also learned.

The attitude of a novice trader facing the charts

I have known many cases of people who try exactly the same strategy of another trader but do not have the same result of this ignorance and wonder why?   Is clear and indisputable that the attitude we take towards the market is critical to the success of our career, an operator must have a similar attitude to that of a psychopath: quiet, calculator, fribola, nerves asero, sure of what he does but others paresca them crazy, facing each market must be a murderer full of pips, corner the market in a very sagas.   When this attitude is acquired is very easy for any operator to succeed regardless of the method applied, it will not have the need for doubt or fear, there is the scheme will be if or will not, will be fully consistent with what is done and if there is loss or gain is equal, the intention is executed according to the logic is not the feeling of the moment regardless of the consequences, because now everything is coldly calculated, the stop and take profit stood equally in accordance with logic not with emotion that produces the expectation of will win or lose ?.   That's when the real race the trader begins, an operator must be a psychopath market, liquidating before take the next step, detect, corner him without giving out, put infallible traps and for this you need to study their behavior, their way of reaction its time of entry and exit, their strengths and weaknesses, this needs adaptation and practice and may be corralling the price, indicators are just a weapon but of no use if you do not know how to use on the victim, such as using a bow and arrow on someone wearing armor and a shield, so it is with the market when there is to know about what else moves, how it moves, how it reacts ...   Indicators are not more than a help, they are not essential, so my recommendation is to begin to understand without indicators, candles this whole pattern we need to study a whole, if we let all indicators very likely will the victorious market, its price they always react first.   The market is one, you have to study, understand it to take the lead.   Note: The example of the psychopath is only an analogy with the teaching point has nothing to do with learning incentives to operate outside the market.

The time in the investment

Sociological studies and the simplest observations can set the current consumer society as more demanding, suspicious, maverick and impatient. At the same time, reducing the life cycle of products is spreading to different sectors. All this is definitely affecting investment products.

These characteristics in the financial world can be seen in the search for high returns even though it may entail more risk. Some time ago the most common investors were the shareholders of large companies. While aimed the same as today, ie profitability, betting on a firm, they undertook and part of a project could be seen. Some of these companies were considered safe investments chosen were those that could never break and / or were led by senior and known positions, sometimes related to politics. Some of them are now in bankruptcy or dissolution processes.

Distrust, partly generated by the financial crisis and these events unthinkable a few years ago, makes no longer sufficient a tiny but steady annual dividend, but today is better than tomorrow, again regardless of the risk. Next to the conventional, we can now draw a new type of investor. This can deposit funds in the morning from a mobile application to invest in an asset with strong volatility but with clear behavior and close positions at the end of the day or short term.

These factors explain the growth of leveraged products such as CFDs (introduced in Spain in 2007) where the simplicity of investment, intuitive platforms, low fees and a possible high short-term returns are the key factors.

If the weather has always been a major player in the central pairing of investments, even today it overestimates or puts it to the other two factors, reaching to evaluate an investment opportunity trinomial: Time-Risk-Profitability.