Dienstag, 26. März 2013

Trading Rules



All most important with the Trading are clear rules which are universally valid and which one must internalise to himself to operate with lasting effect profitable in the market! 1. Money-and Riskmanagement: Pure computationally I go out from 10,000 euros of account / depot, or the amount which one has for this "history", FOR THE REST, and needs not vitally on view of several years, provided that this is calculable, because for UNFORESEEN one should be always liquid!

          Okay, I make it short: We have an available capital of 10K and want traden, under the rules which we here of course more than suggest, may not be risked, on this occasion, per Trade more than 100 euros! Now I go, for my part: I poste a Trade via a derivative, I poste a light with course XX, because the course makes no difference the risk by SL is entscheident! So, I announce, e.g., an EK and a SL, the distance in between amounts to 10 cents, so I can buy max. 1000 shares not to cross my 1 % risk! If it stops the light from, I get rid of 100 euros and no more and still more than liquid. However, the next light introduces in me 50% what is called with 1,000 euros of application 500 euros. The next Trade/light becomes again ausgestoppt (100€ of loss) and the next brings 70% again what would mean 700 euros of profit! Therefore one sees that strict Money-and Riskmanagement also means far more, than any theoretical hit rate!!!

2. The CRV: The famous CRV names the THEORETICAL relation between calculated profit and loss relation, in accordance with 1.) and continues from it. Because solely the risk is certain at the beginning of a Trades, the CRV is fictive half of it, because upwards I can "doctor" the measuring pole arbitrarily! I have defined my risk (also with pleasure as 1R called, here 100€ again) and enter the Trade. The aim of the Trades is next charttechnische Bigpoint which is far away xx Punkte/Pips/Prozente. One may lie himself, besides, not in the pocket and "be calculated" a high CRV, but seriously weigh with the help of the historical data! I myself always search set-up which has down approx. 1% of air and upwards mind. Then I conceive 5% of place, then my Trades. That is theor. CRV of 1:5 (or 5R). I search derivatives out which can reflect the scenario then in the best way possible, or goes (with long) directly to a share. However, the minimum CRV had to go mind. 1:1 amount, because everything under it is a scrap metal! And even 1:1 nothing is basically also, because the potential should be higher and higher than the risk. However, this counts only if in each case the same sum is driven in use application and risk (see RM/MM) what not always is the case. Above all gepostete notes with SL=KO are concerned by it, because these either become geknockt, or can fast double! No sense make Trades which I read in the 2.0-group partially which have, e.g., an EK of 1 (whatever), a SL of 0.5 and an aim of 1.2! This is wide under 1:1 and on a continuing basis tötlich, even if more than half end in the profit! To raise a very good possibility the CRV ENDEFFEKTLICH, are part sales and/or dragging the stop as it is done here in the group! There are not more tried and tested means to operate with lasting effect, because the predetermined CRV is fictive as said and certainly only the maximum loss in proportion to a theoretical aim which one would release with pleasure. Because the reality looks, however, very often different, one must make in the final effect the best out of that. However, prerau's settlement for it is of course a very good technical analysis, combined with a well-arranged serving of long-standing experience! Only this gives in my opinion the honest chance of a good CRV which to itself of course only afterwards define honestly, or allows to calculate!

The result from it can be briefly described: ONLY HE COUNTS IT WIN! And he must be maximised, while only the loss must be calculated from the start clearly and also is able!
However, we are honest sometimes, I have, e.g., 50% in the pocket, with a SL=KO-Trade (CRV 0.5) and take this, I have also not become poor! ;-)