Forex investment tips

Foreign exchange investment is strategy-oriented, and buying and selling foreign exchange based on intuition and luck will sooner or later fail. Investors must realize that luck cannot always favor themselves, and when luck is far away, it means losing money. When the number of profitable transactions of investors is greater than the number of losing transactions, and the account balance is increasing, it means that the investment strategy of foreign exchange transactions has been found.

Simulate transactions in advance

Investors who have just entered the market tend to have a higher interest and are eager to conduct foreign exchange trading, but they lack certain knowledge and experience skills, and blind impulsive investment is often not satisfactory. Therefore, investors who are new to the market should be patient and learn step by step. They can use trading software to simulate trading first, cultivate their own operation strategies and skills, and wait for certain experience and skills before entering the foreign exchange market for real combat trading.

Resolutely stop loss

Investors must understand that the losses of stop-loss and re-entry are almost the same. But why can't many investors stop the loss? Is it driven by self-esteem, not willing to bow to mistakes and losses? Stop loss is the ticket to the next ball, but not to stop the loss is a pass to hell, The two are just the difference between thoughts, but the results are very different.

Strict fund management

Fund management is to manage the proportion of positions held by investors when making transactions to the total funds. Regardless of profit or loss, the investor's entry funds must always be kept below 15% of the account funds. The funds that can be added to the market can be chased, but only if the previous order has a certain profit. In this case, the total market capital cannot still exceed 15% of the account funds. For example, when the total fund of the account is 20,000 US dollars, the fund for admission cannot exceed 3,000 US dollars at most.

Strictly follow the trading rules

When conducting foreign exchange transactions, investors are never allowed to incorporate any personal emotions, whether on-site or off-site. The reason for this is that the market changes rapidly, and investors will have 1,000 reasons for thinking and ways to choose, but in fact, there can only be one correct result in a specific time, that is, the investor's hit rate is 1 in 1,000 .

Grasp the direction and never operate against the market

As the saying goes: those who follow the general trend win, those who reverse the trend lose. This is the same principle in the foreign exchange market. During the trading process, investors should "close" positions as soon as possible when they encounter a loss in the market. The profitable position can be held for as long as possible. Try not to let the loss occur on the profitable position. The sudden reversal of the trend should be closed in time.

Make plans and invest objectively

It is best for investors to issue trading orders only once a day, regardless of whether the results are correct or incorrect. The final result of the continuous issuance of trading orders is: people's hearts are driven, emotions are mixed in, consciousness is controlled by the magic of the market, and mistakes are constantly made to make investors forget all the criteria for their entry. The final result can be imagined Too.

Independent judgment

Trading is your own business, and you should decide for yourself. If investors are not confident enough and trade based on hearsay, the consequences are usually negative. Simply put, the opinions of others are for reference only, and your own feelings and judgments are the final decision. Therefore, investors should not easily believe other people's opinions and opinions, thus affecting their trading direction. Investors must always make independent analysis and judgment on the market trend and make their own claims.

Inadvertent missteps, the rapids retreat

If the investor chooses the wrong direction in the transaction, causing the position to be in the opposite direction to the market price fluctuation, and the position is at a loss, it is not suitable to overweight at this time, and should take decisive measures to withdraw from the transaction to ensure that the loss is as low as possible and affordable Within the scope, so as not to cause the adverse situation of more serious losses and increasing risks.

Good at recording and summing up experience

For investors who are new to the foreign exchange market, it is also very important to be good at recording. In the absence of experience and lack of professional skills, the record can provide investors with some analytical information for easy application and summary. Daily records allow investors to clearly identify the event news or other related reasons that occurred during the transaction. If it is a profitable transaction result, it means that the analysis is correct. When similar or the same factor appears again, the investor can Make the right decision quickly.

Even the best investors will make mistakes. For ordinary investors, mistakes are common. Since mistakes are unavoidable, investors must learn from mistakes and learn lessons to avoid making the same mistakes next time. When making mistakes, you must first balance your mindset, learn to control your emotions, and face the gains and losses with a calm mindset. This is also a process of improvement, summing up experience and analyzing the results, to avoid similar situations or more serious errors in the future trading process.