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Why does the same trading strategy bring different results to different traders?

08/30/2018
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  • Cryptocurrency
  • trading
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To start trading on the stock exchange without a well-thought-out strategy is the same to wandering in the pitch dark in an unfamiliar room-you never know what you will stumble in the next second, and what it will cost you. Trading strategy allows you to "illuminate the market," to see it, to predict price fluctuations, to plan your steps and minimize risks. There are many basic strategies, and there are even much more personal, that is, those that traders have created for themselves. But whatever strategy we use, two participants will receive when using different results. Why does it happen?

First of all, because any strategy is a set of clear rules that must be followed. These rules explain when to enter the market, when to stop, what positions to open, when to activate trade, and when to pause, waiting for a period of strong turbulence. So, one trader under any circumstances will not allow himself to break these rules, and the other will retreat from them hourly. Of course, they will not get the same trading results. It is likely that the first will be in the black, and the second will lose a certain part of the deposit, and maybe vice versa.

Secondly, the trader is still not a machine and the human factor can be traced in the behavior of even highly qualified specialists. Sanguine people tend to be more persistent in achieving their goals, consistent and less painfully perceive failures as choleric, who experience flour, opening long positions, but feel free in the short and medium term trade. But the kings of stock trading are still phlegmatics. Traders with this psycho are very difficult to bring out of balance, they are calm and make decisions with a cool head. Such traders do not care what strategy to follow - they will succeed with each of them.

Third, the behavior of traders within the same strategy is influenced even by the amount of funds in open positions. The general rule is that the more money a trader risks, the more he reacts to changes in the market and the higher the probability that he will deviate from the rules of the strategy.

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