Planning Trades To Control Risk
The problem with many traders is, they only have half a plan, the easy half. They know how much profit they're willing to take, but they don't have the foggiest idea how much they're willing to lose. Technical Data used in the field explained in iosh course in Rawalpindi. They're like a deer in the headlights, they just freeze and wait to get run over. Their plan for a position that goes south is, 'Please God, let me out of this and I'll never do it again,' but that's wishful thinking, because if by chance the position turns around, they'll soon forget about God. They'll go back to thinking that they're geniuses, and they'll always do it again, which means that they're sure to get caught, and get caught bad.
I have a true story I'd like to share. It's about a broker I knew and a Canadian dollar trade she made. It goes like this:
I received a phone call from this lady moaning about a Canadian dollar trade she was in. She was managing money and had all of her clients in this particular trade. Canadian dollar, at least at that time was, and still can be, a thin and extremely volatile market, and is best traded by people who have a genuine need to trade them. But she was in and in up to her neck in trouble. She said, "Joe! I don't know what to do! If the Canadian goes down any more I'm going to wipe out all of those accounts." She told me she had been so sure the market would move up, that she never even planned the amount of risk she was willing to take, and by the time she had determined where to put a protective stop, Canadian dollar had shot past that point. Some more details of iosh course in Rawalpindi are as under.
The lady broker had no plan for what she would do if the market moved against her. Whatever planning she did was done after, not before entry into the market. She irresponsibly took unlimited risk with client accounts, having no idea of her exit point. TSK Training for Skills and Knowledge is the best institute in Rawalpindi Islamabad for Pakistani Students who wants to join iosh course in Islamabad.
