As an important means of investment and financial management, foreign exchange trading has many investors already in it or preparing to join it, but there is always such a problem in foreign exchange trading, most people are losing money, and only a few people are making money. So, let’s talk about Forex Trading Tips : how to avoid losses in foreign exchange speculation ?
Some foreign exchange investors say that it is a technical problem. Here the author makes it clear that this is not the main reason. Technical analysis includes a lot of content, but in fact, only a small part of it is needed by practical investors. difficult. According to the transaction bills that the author has reviewed, most investors lose money because of problems in some very basic places, and this ultimately boils down to a mentality problem.
When most investors lose money, it is not because they are not sure about the foreign exchange trading market. There are two reasons for the most losses. One is: there is no strict stop loss point. The more you lose, the more you lose, and it is also reasonable to control investment risks with a stop loss. The author believes that each stop loss point should be within the range that you can accept, generally no more than 3%-5% of your total capital.
The second is the loss caused by wanting to make more money when it is already profitable. ‘Insufficient people’s hearts swallow elephants’ The financial market is volatile. If you want to maintain profits and continue to make more profits, you must gradually advance the stop loss, so that at least you will not lose money. Because you were profitable one second ago, you may already be in a state of loss the next second, so after reaching a certain profit, investors need to stop being greedy.
Go with the trend or go with the market: Many times the financial market does not follow your temperament. When you always feel that it is going down or the uptrend is exhausted, it will always go up and down. Investors in foreign exchange trading should more carefully analyze market trends and analyst recommendations. If you are angry with it, it will amuse you, and you will always lose yourself in the end. The author has seen more than one investor who liquidated their positions because of the contrarian trend, so it is absolutely not a big mistake to say that they are following the trend.
If you want to gain profits in foreign exchange speculation, you cannot rely on others to give you direction or your own luck. The most important thing is to standardize and systematize your own transactions, and bring your own transactions into the scope of discipline. Trade with the trend of the market, so as to be unfavorable.