3 Penyangga Utama Dalam Trading || 3 Main Pillars in Trading
You can look for reference related to Meta Trader It has no relation to trading. It's just a platform that must be mastered. Next, we'll discuss the main material; analysis and risk management. *Intro* I start it from main lines For you who are newbie, don't get lured with other profit, promos, or even high return investment All of them are nonsense. It's better if we control it by our own selves. We learn it a lot. If we still feel doubt, leave it! I start this with 3 main pillars in trading If it only has 1 pillar, it's dangerous. Doesn't mean it can't. It can, but it's dangerous.
If there are 3 pillars, all of them must be strong. It means that maintaining the pillar object so that it won't fall. That's why the pillars must be strong. We must master them. The first main pillar is related to psychology management. trading psychology management or controlling the emotion How to control emotion? We must really understand about trading psychology First, master all materials If I teach you the technical, you have to master all of them Then, learn to be discipline. Being discipline means if we have trading system, we use it. If the trading system really suits on our character We must prioritize in being discipline Second, to control psychology management is mastering the trading system or trading plan.
Before we order, we must prepare our trading plan It's like.. If we want to build a house, we must prepare the design first. We prepare the design neatly. If not, our house will be messy. If we design it neatly, we just need to follow the picture. Third, always use realistic target! Realistic target is easy to be got and resonable. Be discipline, master trading plan, and determine realistic target. Realistic target is related to our durability and budget Usually, it's 0.5% - 2% Our realistic target is 0.5% - 2% per day.
In trading, it's still reasonable and realistic. It's different if the target is 100% - 200%. That's gambling, not realistic. Or high level of speculation. In the reversal market, it has potential to run the budget out quickly. Then, the fourth component of controlling emotion is.. so that we can control ourselves. Because the most important thing is controlling the emotion No matter how good our analysis is, we won't survive in a long time if we can't control our emotion.
Because we always want to get profit more and more When we got $1.000, we want to get $2.000. When we got $2.000, we want to get $3.000. That's normal. But, if we don't control our emotion and we do once mistake, all of our budget can run out. Fourth, don't forget to always limit our loss We can limit it 400 - 500 Pips per transaction It's in the XAU. For another pair, you can adjust it.
Or if you want to be easier, you can use percentage. It's 2-3% of budget. For example, the budget is $2.000. I prepare for the loss 3% that's no problem. 3% of $2.000 is $60. So, the maximum loss per transaction is $60 If we get loss $60, we do cut loss or recovery Limit your loss. There is no trader who are able to get consistent profit without understanding loss limitation. There are many possibilities to get much profit, but the question is.. how long we can survive?
If we see ads like.. "Get 90% profit in minutes!" or "Get 100% profit in hour!" They don't use healthy risk management. It has chance to run our budget out quickly Pay attention to the difference! when we do high risk, the profit potential is big but the risk is also high. It's useless if we get $1 million today but tomorrow we'll get $2 million loss.
That's same. About profit screenshots in social media, they need to be asked, 'how long they can survive in getting those profit?' They say.. "We only need $50, it will return to $50.000" That's high level of gambling. I don't recommend you to follow these kinds of thing if you want to use trading as your mani job continuously. Don't forget to limit the loss. Whatever the market condition is, always limit the loss. The most important thing is it's still reasonable If it's still reasonable, we let it move. If not, we do cut loss.
When the market reverses, cut loss is the only right way. Cut loss doesn't mean we delete it. But, we retreat 1 step to go forward 3 steps We can use the loss as the material for doing introspection To always apply risk management and psychology well. Because psychology is related to patience. Patience is a part of success in trading. Because we're patient in waiting for the right moment When market qualifies the trigger that we use That was about los limitation Now, the fifth Don't reject sustenance It means that.. For example, our target is 100 Pips
Turns out, the candle just move 60 Pips. We can close the profit earlier. It means.. our main goal in trading is getting profit. So, when the profit close to our target, we can save it first. After we save it, it becomes ours. When there is still potential in the market, we can evaluate it. We break first, to calm the mind. Then, we observe the market again, is there any other opportunities?
If yes, we can take position again. We'll take position when the market qualifies our trading system. We don't take order anytime with random Lots. But, we always see the market condition. For example, Asia market doesn't suit with us. So, we take order in Europe market. If USA market doesn't suit with us, we can choose any market based on our trading character We can't do potential trading all time Not all candle character can be used as the basic to take order Sixth, be loyal. Be loyal with our trading system I'll explain how trading system can be maximum later After we found the trading system, we use it continuously.
So, if we use it continuously, we'll understand the character easily. So, learn to be loyal with the trading system Seventh, follow the trend direction. Follow the flow If the direction goes down, we focus on Sell. We can choose the trigger that we want to use.
or we prepare the basic of the order Last, always be patient in waiting for the right moment or waiting for the opportunity The point is, we're be patient. That's how we control our psychology First, we must know how to master trading system. Then, be discipline, don't reject sustenance, limit the loss, take realistic target, Always be loyal with our trading system, follow the wind direction One more, we must know how to order and exit or the order and exit criteria. Actually, it's included in trading system. First, it was psychology Second, it's Money management No matter how good we are in analyzing the market, but if we can't manage the money well, that's useless. Our budget will run out quickly Money management is more to how we control the durability, how to determine the Lot, how to master the Lot and risk. Usually, money management is side by side with risk management The main thing is Lot, second, it's risk The easiest is using Lot. We use 20.000 durability
It's safer if we use 50.000 durability But, if we use small Lot, we get too low profit So, I use 20.000 durability First, we give number to hook the market so that you can explore it So that you can improve your skill. If you are asked to take durability, you don't have basic there. You don't have experience there, so I use 20.000 durability. So that you can improve it by yourself later 20.000 Pips is durability. Even you can't let your transaction overnight
So, our transaction finish in 1 day Try to make it clear before at 12.00 AM. The formula to count the Lot = Budget : 20.000 durability The budget is in USD, not IDR.
For example, I use $60.000 So, $60.000 : 20.000 Pips = 3. That's the maximum Lot that we can use Maximum means.. If we use it once and we make mistake, we do cut loss.
It's different if we divide this 3 Lot into some Lots. If we make mistake by using the first Lot, we can recover it using the second Lot or we can divide it into 3 Lots. It's not we're using same 3 Lots for 10 transactions.
It means 30 Pips. That's mesy. That's about counting the Pips Money management is related to how we apply the Lot then how we apply the risk. Why our durability is too low? As long as we understand the rules, 20.000 is more than enough to save our big budget
to be continued...
2021-10-11 00:58
