When we say that ten years working in the market, we first of all say that it is ten years of experience working with people.
The lion's share of the stock market is dedicated to technical analysis, trading systems, mathematical modeling. For those useful things such as the loss of the so-called human factor. While the psychology of investor behavior is largely determined his victories and defeats. By observing the reaction of the players in different situations divided the executive director of the investment company «TSERIH Capital Management» Vladislav Kovalchuk.
«Currency speculator»: You work on the Russian stock market almost since its inception. Sometimes you have accumulated mass of observations of human behavior that relate to the category of «players». Does their behavior, how they operate in the market, some interesting patterns?
Vladislav Kovalchuk: People who work in the stock market, it seems surprising act in different situations. Do not discovered America, when I say that all traders, from novice to veteran actor, admit mistakes, which are often associated with psychology. For example, a newcomer has made some good deals and believed to be a professional. For any other business, such as sales, this is normal. Appears self-confidence in their actions. It may be somewhat overstated, but that in itself is beginning to work on professional development - pave the way to success.
On the stock market a lot harder, a manifestation of such feelings and can become a psychological trap. For example, an investor engaged in intraday trade, get in a few days, a positive result. It begins to seem that he can outflank the market and a couple of days gets a loss. And here begins the most important thing - the player thinks he has done everything correctly, could still beat the market and begins to methodically repeat mistakes and to continue to consider them random.
«AC»: How long can this last peak?
VK: As they say, «the light at the end of the tunnel is», but not the end of the tunnel. Gradually, the player loses the amount won. Then, from the first trap, he gets straight to the second - a strong desire to win back lost, do not analyze their misses, and, accordingly, without changing the tactics work. «In fact, acting in a way, I am in the beginning of a well-earned!» - Thinks the player. As a result of loss increases, and the investor could lose starting capital.
Or, for example, when you close the position the player wants to sell a little bit better than what is currently the market offers. He starts to chase for the price, the price goes against them, reducing the position. Turning to professional slang - in an attempt to catch «pips» trader loses «figures». Consider another situation - a player aims to capture at least a minimal profit, but it is absolutely not willing to close down loss-making position. As a result, it can only exacerbate the loss.
Such examples are many. Most problems are only two motives - the desire by all means was not possible to miss profit and the fear of losing ones. And emotions and too much arrogance leads to mistakes, not only beginners but also experienced players, who then are puzzled as to once again managed to come to the same rake.
«AC»: And what behavior would be correct in this situation?
VK: Stop and think, look at the situation from the outside. Forget about losing and start from scratch. It seems that everything is done very simply. However, as all the excellent know, is difficult to rise above their emotions and objectively analyze the situation.
«AC»: So you need to consult more with other players?
VK: On the market, each busy with his / her work, people earn money, and not always even if you want help from colleagues in the workshop have an opportunity to engage in other people's difficulties. We solve this problem in another way - in our institute, there is personal managers. This means that any trader can always count, including, in consultation with his personal manager, and specialist analytical services company.
For large customers, we have such a service as individual trading advice. In this case, other than a personal manager and analyst, to provide services to the client connects personal trader. He shares his views on the situation and, on request, offers suggestions of conduct on the market.
«AC»: As far as investors are listening to these recommendations?
VK: It depends on whether the person is ready to even think about the meaning of our recommendations. When he calmed down and examined, it has already made a step in the right direction. Of course, this does not mean that he starts to win, but at least it has less chance to get in the trap, which came before him, are and will get thousands of players worldwide. In general, customers in most cases, followed by our recommendations. Thus, an individual trading advice is now very in demand. Unfortunately, our resources in this area for obvious reasons, are limited, and we offer this service only to large investors. However, if we say exactly that to help a person to objectively look at what is happening, adjust their behavior to avoid the obvious mistakes, then communicate with the manager is quite enough. In addition, we regularly hold seminars for both beginners and more experienced players by our Training Center. For beginners it is a good chance to not only learn basic elements, but also listen to the professionals who «go to the light».
«AC»: That is a personal manager in part serves as a psychologist?
VK: Well, that gives the opportunity to sell all the brokers - who is a more interesting, someone less interesting. But access to the market - this is only part of the iceberg ...
Interview prepared Kristina Kuznetsova