Article by Roi Reuven, Founder and Co-CEO of Psagot College , Head of Capital Markets at Psagot College –
From the book "Where 300% Gone", which won twice the "Book of the Month" award by Globes magazine.
In 2005, Roi Reuven and Yaniv Arbiv established the first branch of Psagot College in Rehovot. And all this only when he was 24 years old.
In 2007, Roi, along with Yaniv Arbiv, was crowned by The Marker magazine as "Stock Crackers".
How to trade in the capital market correctly? What to do and what not?
Upon entering the transaction after placing the stopwatch and take-profit instruction, you must move away from the screen.
Once you do not do this automatically and it is very difficult to overcome it you will sit at the screen and activate the emotions. Once the deal goes against the direction you will be pressured, be afraid of going wrong and look for reasons to exit the deal. Once the deal goes with the direction you will be happy and follow it, once you see the direction change and be spaced you will want to close the deal even if it is before the take-profit order, you may exit a successful deal at a loss or profit less than you set as a goal, in the long run it is very significant.
The multiple screen hours will cause you a lot of unnecessary stress and emotions, will make you imagine deals that do not exist at all and get into deals that you did not want to get into at all.
I know that at first it is very difficult to disconnect, I can attest to that. The best way is to keep yourself busy with other things like gym, walks, etc. You can also in the form of systematic training set yourself a maximum time frame each time you move away from the screen. So for example an hour, two hours, three and so on. Until you can move away from the screen without noticing at all.
Arranged work plan
One of the things I took care of at the beginning of my journey was to build myself a neat binder in which I arranged material for myself in a number of dividers: work strategies, successful deals, failed deals, portfolio management, theoretical material. I took care to write all my types of strategies in order.
With each entry into the transaction I print the graph that clearly describes the reasons for entering the transaction with points describing the entry, objectives and stopbook instruction.
In such a way that the way of working is very orderly, it is easier to maintain self-control. When the deal is profitable I
Takes care to analyze again the reasons for my success, and in case the deal fails I look for the reasons for the failure. In this way I invest time in my self-analysis.
On top of that, every early week on the Sunday before the trade opened I used to analyze the graphs of the major pairs I work with, I marked levels where I would like to look for the trades. And only by pre-planning did I work. I was as careful as possible in making transactions "
From moment to moment "Such transactions are sharply affected and some emotions do not have too much discretion in them. Therefore in the long run a trader who makes unplanned transactions may disappear from the market.
Determining the appropriate quantity
First you need to determine the right transaction size according to the question?
If I were to lose $ 800 now how would I feel? the mother I would go into a stalemate?
Would I have developed a vengeance on the deal I lost and immediately opened another deal to "get back the money I just lost?"
Was I disciplined to the stopwatch I set and cling to, or would I close the deal before the stopwatch was caught because I was unable to absorb such a large loss?
Would the loss from the deal have affected me adversely regarding continued trading?
I.e. the first way to determine the big deal and the right leverage is depending on how much I can lose in a single deal,
Without this deal causing stress and damage to self-confidence in trading.
Therefore everyone who enters the capital market needs to be real with himself and know how much he is capable of losing in a single transaction without the consequences of the loss affecting the continuation.
The second way of determining the size of the deal is depending on the results.
But before reaching a big deal one has to provide results.
My recommendation is to start with small trades depending on the results and improving the ability to increase the amount of shares gradually.
Over time the tactical and mental ability improves in the trader and depending on the successes, the quantity should be increased gradually.
Each period increase the amount of shares slightly and the volume of transactions will increase according to the results and not according to the fantasies about getting rich quick.
I understand it's fun to call a trading room and tell a dealer to open a deal for $ 20,000, it's good for ego not for learning.
The goal is in the first stage to learn to trade and withdraw money from the market in a systematic and regular manner.
The success of the trader is not the same single blow but the ability to accumulate capital systematically.
Along the way, in parallel with the results, it is possible to aim for greater profits with the help of the existing leverages in the market.
Listen only to your heart, do not follow the advice of others
Advice from others is a very big mistake in trading, I find a lot of traders who err here quite a bit. Once you hear something else and not yourself know that even if you earn it will be for a limited time. You are not the one who recognized the direction and the deal is something else that is the same. So the profit from the deal is not really yours, there is no systematic way here and very quickly you will find yourself losing everything you have earned.
Even if you think the same person who gives you the advice is an excellent trader and he understands what he means. Do not enter into a transaction before analyzing the transaction from A to Z according to your same strategy. If you find that the deal is indeed a good deal according to your strategy, ask yourself the question "Am I getting into the deal because he got into the deal?" If you are hesitant in your answer be careful of the deal and do not enter.
The problem is that most of the time we will look to justify that person's entry into the deal and not really see what we would see if we analyzed the graph on our own.
I can say from my experience that I experienced a big loss from all the losses I had, precisely from the deals I got from good friends who were in my opinion excellent traders who never lose, I thought.
I was after a loss and wanted so badly to recoup the loss, so I went into trades that the same friends told me they went into, I who analyzed those trades did not find the reasons to enter into the deal, and yet I went in after saying to myself "he is a good trader, I sure he knows what he is about Speaks .. he is never wrong .. what can already happen ".
I quickly found out that I had deceived myself, everyone is wrong and you can not trust anyone when it comes to trading in the capital market, except yourself.
Remember! Enter a Transaction After an in-depth analysis of yourself, once you find a reason not to enter into a transaction, do not enter! Even if the same trader is an excellent trader "who is never wrong". Follow your strategies and not someone else's.
Only systematically will you be able to generate profits from future capital markets over time.
"Aspirations and dreams are just like seeds planted in the ground. Some of the seeds will remain in the ground and will never be watered in water, they will forever remain dreams in the eternal desert.
The rest will be launched in water, which are the same resources of power, faith and aspiration that exist within us.
Here the same seeds begin the journey out of the earth and become sprouts, we walk with a lot of faith towards aspiration, a clear goal to fulfill the dream.
First the soil is soft, there seems to be a chance to break it, there is a clear and possible way. We continue our journey step by step, seeing how in another moment we broke free from the earth and fulfilled our dreams. But exactly, wait, one millimeter before the sprout bursts out of the ground into the air of the world into the rays of the sun. He encounters the greatest obstacle of all, he encounters dry, solid earth like concrete.
Even though it's only one millimeter, and it only takes a little more power, a little more effort to break out and make the dream come true.
Despite this here most of us raise our hands, weep over the way it was done for free and the irreversible damage done. Hope disappears and with it faith becomes a great doubt in life, becomes a mistake. Everything suddenly seems black and impossible, life looks even worse from the beginning.
Undoubtedly the dreams have become the darkest nightmare we could ask for. Only those who nevertheless did not give up and continued to believe, will turn from sprouts to buds, these will break the earth and go out into the world into the eternal sunlight, here even the sky is no longer limit.
Remember! Life gives us all the opportunity to fulfill the desires of our hearts, but not all of us know how to truly believe in what we want, and not all of us know how to hold and accept it.
That is why most of us stay forever in the earth and never see daylight. But the few who will remember and internalize it, the few who knew that the way of the world is to show us the greatest darkness a second before the heat goes out. They will get to experience it and feel the wall of the sun. So remember the way to heaven passes first in hell, after the journey through the scorching flames of fire, you will meet at the door out to heaven the worst of all, the devil.
Many here lose their faith and the fear enters them so strongly that they lose their soul. Only in one thing can Satan stand, in the face of unbridled faith that has a place in heaven. Never give up !!!! "
And at the end of it I wish you success in your path and hope I can see you, one of the merchants who survived and achieved their dream.