[Stocks, FX, virtual currencies] Always think about two scenarios


Whether it is stocks, Forex or cryptocurrencies, there are only two concepts of investment called trading: buy or sell. So it’s simple, just buy when you think you’re buying and sell when you think you’re selling. However, while many people may be able to imagine the scenario they want when trading, many people may not be assuming a scenario that goes backwards. Whenever you trade, you need to think about two scenarios.


Things to do before entry

As with any trade, whether it is stocks, virtual currencies, or Forex, various factors such as unexpected price movements, economic indicators, and politics work after entry, and it is not uncommon for the development to occur unexpectedly. That’s what trading is all about. Therefore, traders should always consider two scenarios before entering, whether buy or sell. It’s a scenario of going forward and a scenario of going backward.

If you go forward

Everybody can imagine the scenario when the flow is as expected in the trade, and you will not be in a hurry. Many people imagine this scenario before trading, and no one is in trouble if it goes well.

When going backwards

The problem is when the flow is unexpected. Many traders do not anticipate a retrograde scenario. If you do not assume anything, you will often be in a hurry or you will not be able to cut losses if you actually go backwards. Because I haven’t thought about anything, I haven’t thought about the withdrawal point, and some people pull it with a loss. In the worst case, you are destined to lose all your principal.

If you get lost, you lose

Market charts are created by human emotions. It takes a firm will to fight in it. If you make an entry without deciding anything before trading, you often wonder where to take profit and where to stop loss, and when you notice it, you will be swallowed by the wave of the market and you will continue to lose. .. Before you actually compete, make a clear decision about what strategy you will use before you enter.

If you get lost, don’t enter

I recommend that you do not hesitate as much as possible when you enter. You may somehow have a position, or you may jump on the rise or fall in front of you. But most of the time you lose. Always wait except when the timing you are aiming for comes. This is because the wasteful hitting of entries always comes back as a result of loss.