Saturday, January 17, 2009

RISK MANAGEMENT II

Understanding risk management is very important for investors to meghandle transaction that position so that one does not experience a greater loss. Risk management are:
1. Cut Loss
Is immediately close a transaction due to the wrong position to take any decision, Cut loss is done in order not to experience a greater loss.
2. Locking / Hedging
Lock the transaction is the wrong position with the position of the transaction without meliquid, to hold the loss
3. Reverse Cut
Meliquid soon as possible is the wrong position, and then replace it with the opposite position
4. AveragingIalah transaction again with the same position, without meliquid of the transaction, based on the analysis of the right, especially when the price movement so that it will turn profit in the second transaction to balance losses in the previous transaction


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