Mohammed Salman, CEO of CHR Capital, emphasizes the importance of each investor's financial plans.
Where it shows if you aspire to success, it is necessary to control your emotions. The financial market is built on change, and success depends on adapting to these changes. Arab traders have three impossible: the ghoul, the serpents and the wafi horse. The fourth impossibility is to have a 100% successful trading plan, and even if it looks like it now, it's likely to be reversed in the future.
He emphasized that successful traders devote 30% of their ideas to technical analysis, 30% to money management, and 40% to psychological management (commitment and discipline). Only 4% -5% of traders can effectively control these factors.
The human mind is also looking for a logical order of things to the extent that it sees illusions as facts. Traders do not invest their money in markets; They invest in their beliefs about markets. The media and noise provide only half-truths; The whole truth is in the charts, and the more you repeat the same mistake, the higher the price of success. If you start investing $1 on the first day of the month and double the amount every day, after 21 days, you will reap $1 million. This is the strength of cumulative returns.
The bull market is born out of pessimism, growing on suspicion, and maturing on optimism. If you spend all your time raising money, you will end up spending all your money to save time, being right or wrong is not crucial; What matters is how much money you make when you're right, how much you lose when you're wrong, and when you win you don't celebrate excessively, and when you lose you don't indulge in excess pessimism. Aim to achieve the required psychological balance.
