Arrangement and to treat lowerings of the level
We all have it and pass by him once or others and will continue to pass by him. For others, lowerings of the level are more common than profit the fixed points. Or worse, each lowering of the level is worse than last. It is an interminable cycle where these holes appear in our diagrams of stockholders' equity or report/ratio of account. How does a tradesman approach arrangement and to face them?
The principal problem with lowerings of the level is that the majority of the tradesmen do not know that they exist and were unaware of them. They only calculated how much they will make and what they will do with EC gained money. But the small thought is given to how much each
trade would bring and per how many trade losers it takes with elimination the account. Those without commercial plan or strategy will not have any idea what will be their lowerings of the level envisaged. Only after they all lose it they carried them out need a plan to treat losses.
The reduction occurs in everybody and possibly in any time occurrence. Whether it does create by the trade business own psychology and the emotion question by the strategy or, the reduction is the trade life fact. The only way will deal with it to prepare for it and if will be
possible, will identify it and retains it to the minimum. This possibly completes the position by the reduction, the trade size perhaps vigilant and is discrete in each trade.
Why is the reduction the biggest reason most people is unable to survive trades because comes and their emotion stress. These are the moments when trade business really tests, some overcome it is completing by the continuation and the pause through the strategy until the reduction. Most, however, the reason suspected unties their system and loss self-confident achievement trade business. Finally, these trade business move out to finally matches they reduction, to the more losses other systems, loses more property rights. This is the biggest damage is not the money but is a psychological vicious cycle. Finally, these trade business are unable to process the stress and the giving up.
Is initially to formulate a strategy and a test and a trade of demonstration this strategy in a coherent way. Once that that is done, begin the demonstration to trade and start to keep the disc and calculate all the losses, percentage of victories innumerable of other statistics to give an idea how the strategy goes. These accounts of demonstration are offered freely by much sponsorise. Among all these calculations ready with employment starting from the trade, there is a calculation for accumulated losses as well as the average loss by trade. These two formulas show the likeliness of a strategy at the losing periods and by how much, one or the other in terms of trade consecutive losers or the loss since the highest amount of stockholders' equity. By knowing this in advance, we can wait it in the near future and not be tempted to doubt and to give up even strategy when does it of it is an advantageous system with long. The majority will never know because they cannot look beyond the lowering of the current level as an element of the total strategy. This is why the test and to review results of execution of strategy is a so great
part of trade, not trading simply. It is where the mechanical tradesmen have an edge while following by a process to take an idea in a commercial phase of final phase.
After having explained the consequences of a lowering of the level, this is why it is so important to concentrate on finding lowerings of the level historical related to the strategy before trading them. This will prepare the tradesman to envisage and treat better the losing scratch. When a person envisages and prepares with worst, it usually comes out of the feeling better mentally, particularly when the result also bad as envisaged.
This mental state must be consolidated and observed constantly for this period. More important than the money losing is the loss of objectivity and confidence. Thus when this period arrives, to
supervise and lend a more detailed attention to each action and mental thought. In this manner, it will carry out the tradesman out of lowerings of the intact level with confidence.
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