“It is not important whether you are right or wrong, it is how much money you win when you are right, and how much you lose when you are wrong.”
This is one of the most Popular quotes by George Soros, who is widely regarded as the best trader of all time. His best deal was when he made a huge sale against the pound sterling and made a net profit of more than $1 billion.
That trade (we’re talking about 1992) nearly broke the BoE.
Since then, Soros has accumulated billions of dollars in the market, which gave him a chance Net worth is over $6.7 billion. He has donated more than $32 billion in funds to charities. Therefore, people listen when George Soros speaks.
In this article, we will look at this quote, which is one of the most popular in the financial industry.
Your goal is not to be 100% successful.
In this quote, George Soros was talking about Trade facts and investments. In that, be warned Traders and investors will always lose their money In the market.
Besides, traders can never be 100% accurate. Well-known traders and investors, including George Soros and Warren Buffett, have seen some poor performances over the years. By contrast, the percentage of traders who lose money is statistically more than 80 percent.
However, be warned, traders must ensure that they lose less money (and also many times less) than they win.
Which trader manages to make more profits than losses will be a A successful one in the long run. If we want to put it in simple words, your goal is to be a consistent trader.
Therefore, traders must incorporate several things to ensure that this happens, including trading strategy, risk management, and a good psychological state.
Having a good strategy
The first thing you need to do to make sure of this Have a good day trading strategy. Strategy refers to the approach you will use to analyze your financial assets and execute trades.
Some of the most popular trading strategies to use are:
- swinging commerce
- Arithmetic commerce
- Copy trading.
should think about taking a few months to come with a trading strategy and test it With a demo account. At DTTW we have our own demo account, which is known as Trade Great Mode (TMS).
The offer contains virtual money, and that means it Traders do not expose their accounts to risk. When you have a good strategy, you increase the possibility of making more money than you lose.
in Develop a good strategyyou must make sure of that Have a good understanding of technical and fundamental analysis.
Technical analysis is the process where you look at chart patterns and incorporate technical indicators to determine whether an asset will continue to rise or reverse.
the The most popular technical indicators These are moving averages, the RSI, and the MACD.
On the other hand, fundamental analysis looks at the factors that have the potential to influence the valuation of an asset. In stocks, they include things like profits And News. In the basic data of forex trading include profits, economic inflationAnd retail.
Adopting risk management strategies
The other thing to consider is the presence of a Good risk management strategy. Risk management is the process of ensuring that you lose less money than you do.
There are several strategies that will help you achieve this, including:
- position size
- Get a stop loss
- Using a trailing stop loss for all your trades
- following direction
Furthermore, you should avoid over-trading, which will always increase your probability of losing money.
Also, you should Think about associations In the market. For example, buying ExxonMobil and Chevron could put you at risk if energy stocks drop. The same is true with exchange-traded funds (ETFs) similar to those behind the S&P 500 and Nasdaq 100.
Another thing that will help you avoid losing money is a guarantee this yYou are in a good mood. In most periods, the main reason many people lose weight is related to psychology.
For example, some people open trades immediately after losing money in an effort to recover their losses. In other periods, the trader can try to open more trades after making several winning trades.
Key psychological features to consider
There are many psychological traits that you should always consider when day trading. These include:
As a day trader, you always should Focus on discipline. There are many things to consider in all of this.
always first Stick to your trading strategy. Sometimes, being under a lot of pressure can change your strategy.
Secondly, always be disciplined enough Stick to your trading volumes. Moreover, you should always have a stop loss and take profit in place.
Patience is an important part of day trading. There are several angles to this. First, you must be patient To wait for your strategy set to succeed.
For example, if you focus on indicators such as VWAP and moving averages. In this case, you will have to be patient and see until the indicators flash Buy or sell banners before you move on.
Moreover, you have to be patient to make sure of it Don’t close your trades too early, especially when you are in a loss zone. It is common for traders to close their losing positions only for the chart to recover shortly thereafter.
Always be in a good place to deal with your feelings. This means that you should Don’t let your emotions guide your decisions In the market.
For example, opening trades when you are angry can lead to big losses. Therefore, make sure that you guard the sentiment when opening your trades.
In this article, we have looked at an important quote by George Soros. In it, he argues that investors should focus on ensuring that their losses are far less than their profits.
He said that after realizing that no single trader has a record of making profits in all periods. Even Ray Dalio’s all-weather strategy wasn’t profitable all the time.
Useful external sources
- In life, you lose more than you gain, and that’s okay – mode