When an investor comes on the market, he should use a generation trading system, without which the conduct of successful operations is simply impossible. A simple decision on the need to purchase the shares of a company is clearly insufficient, because it is necessary to correctly determine when to invest, as well as the amount by which the investment will be made (the share of capital). There is a great a variety of investment ideas and all sorts of assumptions on which the investor can rely when making their actions. Technical and fundamental analysis, news, and plying between market rumors insider information – all this may be part of such a system. But in any case, a system that does not contain three main components (risk management (including money-management), the psychology of trading and market analysis), can hardly be called good. Incorrect and premature entry into a position capable of standing to destroy any, even the most brilliant and absolutely correct investment idea.
For example, if you buy futures on the stock with shoulder one hundred on the entire deposit, the decrease in the price per share of one percent (which, incidentally, is quite normal fluctuations in the price) will lead to forced closure. In this case we can speak about the obvious error that zakyuchaetsya in the incorrect determination of risk positions (risk management). Objects of the investor chooses to invest on the basis of market analysis. The correct amount of the transaction and exit from the transaction (stop-loss) can determine the judicious management of risks, but the timing of entry into the position determined by the knowledge of the psychology of trading and possession of methods of market analysis. Want to stress again the importance of a systematic approach to trade. If an investor wants to risk, he just needs to explicitly recognize the risks that he takes himself.