​The Master's Secret: Three Common Causes of Losses

WikiFX Strategies (22 Feb) - Here are three common causes of losses summarized by William D. Gann, the “master of Wall Street”, on his nearly 50-year trading experience.

1. Lack of market knowledge

Many people enter the market blindly, oblivious of the mistakes they may make, much less make corrections in time. They do not realize that professional quality is highly required in trading. To make profits, the first thing is to acquire knowledge. Start learning before losing.

2. Fail to appreciate stop-loss

Traders are likely to make wrong decisions, which makes stop-loss useful. To place stop-loss orders is to correct mistakes in essence. For instance, if the initial operation is found to be wrong, it should be sold immediately.

3. Frequent operation

The more times you buy and sell, the more times you change your judgment and the higher the probability of making a mistake.

Therefore, Gann's advice to all investors is: please study the market carefully before you lose money. Before entering the market, investors must understand:

1) You may make the wrong business decision;

2) You have to know how to deal with mistakes;

3) You must follow a set of established rules and never blindly guess the development of the market;

4) Investors must learn to follow market conditions;

5) Market history will recur.

WikiFX, a forex broker info search tool, is popular among global senior investors! If youre interested, please visit bit.ly/wikifxIN.