Practical Forex Trading Tips:
1.Invest with “idle money”
The money used for investment must be “idle money”, that is, funds that have no urgent and accurate purpose at the moment. If the investor invests with the necessary expenses of family life, in case of loss, it will directly affect the family’s livelihood. Or, when you use a sum of money that should not be used to invest to make money, you are already at a disadvantage psychologically, so it is difficult to maintain an objective and calm attitude when making decisions, and the chance of failure in the investment market will increase.
2.The confidant comes first
Knowing oneself and knowing the enemy can help you win a hundred battles. Investors need to understand their own personality, because people who are prone to impulsiveness or emotional tendencies are not suitable for this investment. Successful investors, most of them can control their emotions and have strict discipline, can effectively restrain themselves. Therefore, confidants can ultimately win in the foreign exchange market.
3.Face the market and abandon illusions
The market is real, don’t be emotional, look forward to the future too much and cherish the past. A senior trader said: A person who is full of fantasy, rich in emotions, and very exposed is a beautiful and happy person, but he is not suitable to be an investor. A successful investor can separate his emotions, fantasies and transactions. of.
4.Small households should not invest blindly
Successful investors don’t blindly follow the opinions of others. When everyone is in the same investment position, especially when small investors are following suit, successful investors feel dangerous and change course. Blind obedience is a fatal psychological weakness of “small” investors. When an economic data is released, a news suddenly flashes out, and as soon as the 5-minute price chart “breaks”, they scramble to jump into the market. I am not afraid that everyone will lose money together, but I am afraid that everyone will make money. In a sense, sometimes misread the market trend, or the situation suddenly reverses after placing an order, which leads to the order being trapped. This is a normal phenomenon, and even experts are not immune. However, when it comes to how to make decisions and deal with the aftermath, the stupidest behaviors all stem from the psychology of small households.
5.Don’t trade too much
To be a successful investor, one of the principles is to keep more than 2-3 times the capital at all times to cope with price fluctuations. If the funds are insufficient, you should reduce the sale and purchase contracts held in your hands, otherwise, you may be forced to “liquidate your positions” due to insufficient funds, even if you later prove that your vision is accurate, it will not help.
6.The idea is set, do not change it rashly
If you have fully considered and analyzed the price and plan for entering the market on the day in advance, you should not easily change your decision due to the impact of current price fluctuations, or make a temporary decision based on the price change of the day and market news, unless it is an investment genius. A flash is generally very dangerous.
7.Be decisive
When investing in the foreign exchange market , there are many psychological factors that lead to failure. A common situation is that investors face more and more losses, and even when they know that they can no longer take chances, they often hesitate and fail to make a decisive decision. The deeper the trap, the greater the loss.
8.The opinions of others are not implemented
This is not to advocate arbitrariness. It is important to know that among investors, only you are responsible for your own investment results. When you have grasped the direction of the market and have a basic decision, do not easily change the decision due to the influence of others. Sometimes other people’s opinions seem reasonable enough to prompt you to change your mind, only to find out later that your decision was the right one. Therefore, the opinions of others are always just for reference, and your own opinions are the decision to buy and sell.
9.When you are not sure, wait and see
Investors do not have to enter the market every day. New entrants are often keen to enter and trade in the market, but successful investors will wait for opportunities.
10.Appropriately stop buying and selling
Day-to-day trading can dull your judgment. A successful investor once said: Whenever I feel that my mental state and judgment efficiency are lower than 90%, I start to make no money, and when my state is lower than 90%, I start to lose money. At this time, I will Will drop everything and go on vacation. A short break from the market can make you re-understand the market, re-know yourself, and help you see the direction of future investment.