Greetings to all readers of the blog Deipara.com and fans of the financial market! In this article I want to talk about how important concentration is in trading, and does it do any financial trader.
For anybody not a secret that we live in the era of information technologies that have a major impact on all spheres of our life including in Forex trading.
As we all know, who owns the information – owns the world, respectively, if the trader gets as much information as possible, then in theory, he hoped, that it will suffer a streak of success. Really – life is very complicated thing, and in the context of this question is not so simple!
Undoubtedly, information is a very important aspect, but not the information the trader be successful, there are a number of conceptual factors.
Now we just talk more about these aspects that should take into account any financial trader!
Abstract let us consider a situation that there are three trader who was trained by the same teachers, the same trading system and with identical conditions.
- THE BASIC RULES OF THE TRADER
Roughly speaking, all three traders were obviously in the same conditions, it seems that in theory they should be identical trading results. But, as practice shows, these traders, even when using identical systems will give very different results.The reason for this phenomenon? In General, for really progressive success, the trader requires certain skills of psychological nature, which in no way relate to the information, or any other technical aspects of trading.
No, You do not think this is very important, but without the psychological aspects, in particular, determination and concentration, the trader will not float away!
To illustrate, I slightly depart from the scope of the market. Probably many have heard the name Dennis Rodman! This is known basketballis NBA, showman, actor and so on. How he managed to succeed in huge numbers of fields? As he said himself, Denis – it’s all about concentration.
Somehow the only one, Denis said his first coach was always set up on the concentration. He forbade Denis to go on the attack and forced to focus on defense, was forbidden to have another hobby, besides basketball.
- EXCITEMENT IN TRADING
As he argues, these skills of concentration later he himself realized and directly in show business, which allowed him to achieve outstanding success.
You may ask how this relates to trading and the market as a whole? This example in the framework of the activities was given with the intention that You understand the overall picture.
Now let’s look at how this factor relates directly to the business. As an example, take three large companies.
1) Pepsi. Is the largest organization that annually sells its products at $ 30 billion, and the cost to the company is estimated at $ 45 billion.
2) Coca-cola. The company annually sells at $ 17 billion, and the cost to the organization valued at almost $ 94 billion.
3) McDonalds. Every year sells at 7-8 billion dollars, and the market value is estimated at $ 35 billion.
So it turns out that Pepsi is almost 2 times larger than its competitors, but its market value is not more, and as for Coca, it is almost 2 times lower. This is because Pepsi working in various fields, and its competitors focus only on one area.
Now let’s move on and see what it’s all about said Larry Williams. In short, Larry is an excellent and famous trader who managed to make a fortune in the market. He’s one of the first to state that without concentration it is impossible to achieve success in the market, it is simply impossible!
If You think that Larry is wrong, then You are very wrong. He says the success of Larry, when in exactly one year, he managed to turn $ 10,000 in amount, which exceed one million dollars. Agree, this is really a phenomenal success!
Let’s judge logically, if you don’t concentrate on one thing, and trying to realize themselves in several spheres. I think in this case, positive results will not be anywhere! In fact, it is better to give yourself exactly the same field – it will be much more productive!
So, if You undertook some thing, it is better to concentrate on him alone. If You try to sell yourself in a few areas, it is unlikely that there will be some real results.