How to choose your trading signals?
We will not describe the uniqueness of their trading system. It is not unique, just it works. Here are a few calculations.
Many providers of trading signals lead the statistics with a very high yield, referred to in points and percentage, providing a huge range of trading tools.Let's you see what lies at the basis of super-profits and what are your risks when using such recommendations. Should such a variety of tools for trading?
Yields thousands of items a month mostly due to a large number of instruments. If the yield is 1000 points a month, they get more from the use of about 10-20 trading tools. This is 50-100 points for each of them. Is it much or little? We believe that the items do not carry any information, the most important indicator - yield as a percentage. And it is very important is the risk, as well as a percentage of your deposit. Trading systems, which give 1000% per year use the savings principle - the principle of adding up the percentages. This means that to obtain such a return is enough to make 21% monthly.
Acceptable risk for a single transaction is 2%. And you should be aware that all the tools, especially in one market (such as the Forex) are mutually correlated, that is dependent on the same values. This means that during the positive trends do you do for all of them, and in the negative periods - lose at all. There are of course exceptions, but basically what happens. Now I figure out if the unfortunate situation you're losing money on every instrument. 10 tools for 2% - it is minus 20% of the hard-earned deposit. And if the tool 20? And it will happen in minutes. And imagine that such a situation happens 2 or 3 in a row?
And now look at the statistics providers signals. Is their one-time loss risk in 2%? Usually this figure is much higher. If the risks for each instrument reduced to 0,2-0,1%, we obtain a diversified portfolio, with the total risk at a time up to 2%. What do you think how justified such a distribution in short-term trading? And is it possible to track in a short period of time each of the instruments?
You lose when some money on the stock market? Those who lost, remember this feeling when the deposit is melting before our eyes and trader thinks: "Lord, help that would deposit remains whole, I'll never take such a risk ... but time passes and the situation repeats itself ...".
And the only remedy in this case is self-control and reasonable risks. Do not rush to get the profit, get the first stable income, and let time work for you!
We use in their strategies to the principle of consistent trade - step by step. We do not hold more than one open position - hold the attention during the short-term trading in several purposes - rather difficult. We at one time run the risk of not more than 2% of the deposit. This guarantees the absence of "price shock" and deep emotions. The main thing on the stock exchange - is to feel comfortable. It is more important than high returns. This approach allows to obtain about 2% return per day. In rare cases, up to 15%. Now, count how many we'll get a month? Now calculate the annual yield, assuming yield has grown from last month deposit. Have counted? That works well piled percent.
Do you have doubts about the high risks for a deal?
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