Forex speculation must profit without loss

A calculating farmer lives on the border between the United States and Mexico. Others make a living by farming, but he finds another way to enjoy a moderately prosperous life on just his $10 savings. In the morning, he spends $1 on a beer and a plate of steak at a hotel on the American side. After eating, he takes the remaining $9 to Mexico.

It was past noon. He exchanged 9 dollars for 27 pesos at the local bank at the exchange rate of 1:3, then took out 3 pesos, and continued to drink a glass of beer and eat a plate of steak at the local restaurant. In the evening, he took the remaining 24 pesos back to the United States, and exchanged it for 10 dollars at the exchange rate of 1:2.4 in the United States. In this way, one day he enjoyed the beer and steak in vain, and the next day he repeated the trip.

In Zhu Fan's small coffee shop, the young man used a story to chat with reporters about the topic of foreign exchange speculation.

Zhu Fan, who entered the foreign exchange market due to studying abroad, has had four or five years of experience in foreign exchange speculation, entering the market with 10,000 US dollars, and now the profit is "more satisfactory to me".

At present, the volatility risk of the RMB exchange rate continues to increase, and the trend of the exchange rate "rising and falling, and the flexibility is further revealed. The RMB is appreciating against the US dollar in fluctuations. So, do foreign exchange investors choose to settle foreign exchange?

"This is the opportunity to invest in the foreign exchange market." Zhu Fan said, "If you hold US dollars, you can buy non-US currencies appropriately. In such a unilateral market, you hold euros or pounds halfway through, and your currency appreciation is more obvious than holding US dollars. If your original investment currency is a non-US currency, you will make a lot of money in such a unilateral market. Take the euro as an example. When the domestic exchange rate was reformed in July 2005, the exchange rate of the euro against the RMB was around 9.8822. Recently, the exchange rate of the euro against the RMB has risen to around 10.41. Compared with the depreciation of the US dollar and the Hong Kong dollar against the RMB, the euro has appreciated by 5.4% against the RMB. The expectation that the European Central Bank will continue to raise interest rates has become a good opportunity to invest in wealth management products in non-US currencies."

Zhu Fan looked like an expert. However, he said in an experienced tone, "The first thing to do in foreign exchange speculation is to be calm, don't think about how much you can make in a trade, you should first consider how much you can lose, and formulate an effective trading plan to make a stable profit."

At the end of the last century, Zhu Fan went to Europe to study. "At that time, my parents directly took RMB to the bank to exchange dollars. I felt very distressed. The black market price was higher than this, but I couldn't help it." Therefore, Zhu Fan began to dabble in foreign exchange speculation.

When I first entered the market, I tried my best to learn various analysis methods, such as trend lines, moving averages, MACD, KDJ, RSI, Gann, waves, and so on. I thought that if the analysis was correct, how could there be any unprofitable ones? Even whimsical: the pound's daily volatility reached about 160 points. If I didn't catch too much, I would catch 40 points. If I made a wrong stop loss of 40 points, I would do 80 points at the same time. If I didn't double my funds for a month, wouldn't the tuition fees come back after a year? In the end, I still paid the cost of tuition.

"After a series of bloody lessons, the lesson now is not to predict the direction, hold after placing the order, exit at the stop loss (or stop win) level, rest and wait and see, choose the direction again - stick to the original direction or backhand."

"Now I basically do foreign exchange, first explore, then follow, and if I feel good, follow up. If the market doesn't go well, I will do the reverse operation with the appropriate funds at the right time to make up for the loss. Of course, learning is indispensable, gather as much information as possible, check the progress of the list on time. Look at charts and news, and then check whether the stop win point has been reached or whether it is ready to exit." He laughed. This is not a good trick. The key word is steady! "Since the stop loss and stop win have been set beforehand, I don't have to worry about being eaten by the market when I work."

Of course, in addition to "stability", it is also essential to be good at calculation. Zhu Fan said that as other ways to make money, investors can also consider using foreign exchange deposits to make profits. Based on the RMB exchange rate on November 27, 2006, 10,000 US dollars = 78,402 yuan. The one-year deposit of 78,402 yuan matures, deducting interest tax, and the actual income is 1580.58 yuan. The one-year income of 10,000 US dollars after deducting interest tax is 352 US dollars, which is converted into RMB, and the income is 2759.75 yuan.

"After all, investing in foreign exchange is not my only thing. I have more important things to do, which is to open my coffee shop." Zhu Fan's main idea is to own his own chain brand.