Almost every trader is not entirely satisfied with their results. They assume that there are problems that prevent them from exploiting the full potential of the and therefore the they are failing to reach the normal return. However, usually they find it very difficult to define this and it is not clear what the need to improve especially if the are fairly trading with a verified trading system.
Trade is a very expense intensive arena and there may be a lot of bottlenecks on our path towards improvement in the profession. Some people – particularly those who are in short term trade, i.e. scalpers, daily traders or even swing traders and all who trade using switch frequently, that the best way to improve their performance is to focus on a one financial instrument, to learn to it in all ways, i.e.y. its specificity, the range of movement, the certain dependencies applied to it.
Does this really work ? This will be analysed following:
Trading in one primary information:
Advantages
Let’s start with one
basic
default. Well, without the appropriate education trade is not a game the result of which is determined by only success. Only when we understand the rules governing the financial markets and one particular tool we can make logical and good considerate decisions. A profitable sector is composed of many elements, but knowledge and experience in this area are very important.
From what has been presented above, it appears that concentrating on a single area of trade is of true benefit to that. Our strategy is completely purified, we know the average daily volatility graph, the periods of the largest market volatility ,the basic conditions at which the most reversals of trends occur particularly in the shortest periods.
We can directly feel the rhythm of that instrument , and react to a change before it event even when it happens, because by our own experience we learn to “read” the given tool in the way that it signals “in between the lines” for example, as the volume of trade increases or decreases. Thanks to such experience and systematicity we have developed true habits and automatism, which are invaluable and will always be advantageous against trading initiative trading and algorithms even against algorithms etc.i.e. advanced trading computer systems. Our trading system just becomes more professional. Whether consciously or not, we are encouraged to rely on intuitive trading.
Threats
The situation is not straightforward at this time. Therefore we need to know that habits can be harmful to almost all areas of life . When we focus on one instrument, we may feel burnt out. Or make it worse to become the sacrifice of excess trade .
In such a situation, it may happen as this, when a long period of time has not opened the position -even and due to the instability of the market stance or when the it occur in a unpredictable way and is having a high variation over the and it is better to avoid it , without relevant signals, emerging from our strategy, or as the possible gain and risk relationship is not at all useful. In a word, we are opening up positions that are incompatible with our trading system.
Dejay, when we become addicted to trade, we become observed when we make claims and make decisions contradictory to our strategies. Therefore, routine can be our curse. However, when looking at the other graph – it is always a recovery for our trade . We see in its entirely different situation and different models. When the situation in the selected instrument is not suitable for trading in our strategy it is unworthy to look at it and try to see anything,
There will be tradepeople who say that and can provide their results that confirm that thesis. However, these are the extreme facts. Trade in one winter is associated with a very high risk condition – one that is not acceptable to the most traders. All experts here agree – to become professional traders, we must strive to reduce risk. And thereisadedicateddiversification-soalsoinstorageanddailytrade. Ourprofittoriskratioshouldbemorethanthetradeinoneyearinthelongtimetheexperienceofriskisgreaterratherthantheavailableprofit.
Butifwebelievethatwecanbecomeexpertsinoneinoneinoneinoneinoneinonetheinone,whenwedonotprogressexcesstrade-wecanknowwhetherthisstylemeetsus. However, in thiscaseyouhavetomanageyourcapitalandparticularlythesizeoftheposition. It is better to set low limits on the trading capital of the system, whichcanbelostpersession. It seems that in thissituation1percentoftheisbasedonafoundation.
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