Ten classic knowledge of foreign exchange trading :
(1) Foreign exchange speculation should be invested in leisure assets
If an investor invests with the necessities of daily life, in the event of a loss, it will immediately jeopardize the life of the family, and the chances of being unsuccessful in the investment sales market will increase.
(2) For foreign exchange speculation, you should know yourself and others
You must know your own temperament. It is very easy to have desires or emotional instability. It is not suitable for this market. Most of the successful investors can manage their own mentality and have serious and meticulous organizational discipline. They can manage themselves reasonably .
(3) Avoid excessive trading in foreign exchange speculation
To become a successful investor, one of the criteria is to maintain more than 3 times the asset anytime and anywhere to cope with the ups and downs of the price. If you have insufficient assets, you should reduce the trading contracts you hold, otherwise, you will be forced to “forced liquidation” to free up assets due to lack of funds, even if it is later confirmed that your vision is accurate, it will not help.
(4) Recognize the sales market and get rid of imagination
A British futures trader said: A person full of hope is a happy and happy person, but he is not suitable to be an investor. A successful investor can separate his emotions and trading.
(5) Do not change your mind hastily in foreign exchange speculation
Set the price and plan for entering the market on the day in advance, and do not arbitrarily change the decision due to the danger of the current price fluctuation. It is very risky to make a temporary decision based on the price change of the day and its sales market information.
(6) Make a moderate suspension of the transaction
A short break can help you understand the sales market, understand yourself, and help you understand where your future investments are. Investor Quote: When you’re too close to the forest, you can’t even recognize the tree right now.
(7) Do not blindly follow the trend in foreign exchange speculation
Successful investors are less prone to blindly following what others mean. When everyone thinks they should buy, they will sell by surprise. When everyone is in the same investment position, especially when these small investors are racing to follow, successful investors will feel risky and change course. This is the same basic theory of rebellion, when most people say to buy, you should sell by surprise.
(8) Hesitate for a while when there is no doubt about it
It is not necessary to enter the market every day. Newcomers are usually keen to enter the market, but successful investors will wait for opportunities. When they feel doubts after entering the market, they will give priority to leaving the market.
(9) Foreign exchange speculation should not be afraid of danger
When investing in the foreign exchange market, there are many psychological barriers to failure. A very common situation is that when investors deal with damage and understand that they can no longer be fortunate, they are usually hesitant and unable to face danger, so they get deeper and deeper. Damage increase.
(10) Say goodbye to past prices
“Past price” is also a very difficult psychological problem to overcome. Many investors are suffering from the damage of past prices, resulting in incorrect investment identification. Therefore, investors should “say goodbye to past prices.”