EC foreign exchange investment basic strategy and trading skills practical guide

Although individual investors' strategies vary, some basic principles are common. The following summary is based on years of experienceEC ForexThe experience and lessons of investment work are of considerable reference value for all kinds of investors. Here are the basic strategies and skills of EC foreign exchange.

First, invest with spare funds

If an investor invests in the necessary expenses of family life, once there is a loss, it will directly affect the family's livelihood, and the probability of failure in the investment market will also increase. Because making a profit with a sum of money that should not be used for investment is already at a psychological disadvantage, it is difficult to maintain objectivity and calmness when making decisions.

Do as much as you can at a loss.

Know yourself and know your enemy

People who need to understand their personality and are prone to impulsive or emotional tendencies are not suitable for this market. Most successful investors can control their emotions, have strict discipline, and can effectively restrain themselves.

We are humans, not gods, and mistakes are inevitable.

Third, do not overtrade

To become a successful investor, one of the principles is to keep more than three times the capital at all times to deal with price fluctuations. If the funds are not sufficient, you should reduce the purchase and sale contracts you hold, otherwise you may be forced to position squaring to free up funds due to insufficient funds, even if the vision later proves to be accurate.

Don't run out of ammunition at once. Load the bullets at any time.

IV. Face the market squarely and abandon illusions

Don't be too emotional, overly optimistic about the future or reminiscing about the past. An American futures trader once said: A hopeful person is beautiful and happy, but he is not suitable for investment. Successful investors can separate emotions from trading.

The market is always right, but it is always wrong.

Don't change your mind rashly

Pre-set the price and plan for entering the market on the same day, and do not easily change the decision due to the impact of immediate price fluctuations. It is very dangerous to make ad hoc decisions based on price changes and market news on the day.

The iron army must have iron discipline.

VI. Appropriate suspension of trading

Day-to-day trading dulls judgment. A successful investor says: Every time I feel my mental state and judgment efficiency drop to 90%, I start to lose money, and when my state drops below 90%, I start to lose money. Therefore, I will put everything down and go on vacation for a few weeks. A short break can help people re-understand the market, re-understand themselves, and better help them see the direction of future investments.

When you get too close to the forest, you can't even see the trees in front of you.

Seven, don't be blind

Successful investors don't blindly follow the opinions of others. When everyone thinks they should buy, they wait for an opportunity to sell. When everyone is in the same investment direction, especially small investors follow suit, successful investors feel risky and change course. This is similar to the contrarian theory. When most people say they want to buy, they should consider selling.

The truth is sometimes in the hands of a few.

VIII. Rational reference to the opinions of others

When you have a good grasp of the direction of the market and have made a basic decision, don't be easily influenced by others. Sometimes other people's opinions seem reasonable and prompt you to change your mind, only to find out later that your decision is the most correct. In short, other people's opinions are only for reference, and your own judgment is the basis for buying and selling.

Suggestions belong to others, but money belongs to oneself.

Nine, the city is not clear

It is not necessary to enter the market every day. Newcomers are often keen to buy and sell, but successful investors will wait patiently for opportunities and leave the market first when they feel confused after entering the market.

If the process of trading is your greatest joy, trade every day.

Make an immediate decision

investforeign exchange marketThere are many psychological factors that lead to failure. A common situation is that investors face losses, knowing that they can no longer take chances, but they fail to make a decisive decision due to hesitation, resulting in deeper and deeper losses.

Not afraid of mistakes, most afraid of procrastination.

Forgetting past prices

The "past price" is also a difficult psychological hurdle to overcome. Many investors are influenced by the past price, which makes their judgments wrong. Generally speaking, after seeing a high price, when the market falls back, they will feel unaccustomed to the new low price. Even if various analyses show that the market outlook will fall again, the market atmosphere is very unfavorable. In the face of these new low prices, investors not only do not want to ship, but also feel "low" and buy impulsively. As a result, investors should "forget the past price".

Remembering "history" means betraying the market.

Patience is also an investment

There is an adage in the investment market that "patience is an investment", and few investors can really do it. Those who work in investment must develop good patience, which is often the key to success or failure. Many investors are not analytical or inexperienced, but lack the stamina to buy or sell too early, incurring unnecessary losses. For example, if the dollar has been rising for a year, then holding the dollar all the time is not an investment?

Early birds don't necessarily get insects.

Thirteen, set a stop loss position

This is an extremely important investment skill. Because of the high risk in the investment market, in order to avoid losses in case of mistakes, every time you enter the market, you should set a stop-loss order, that is, when the exchange rate falls to a certain predetermined price and may continue to fall, you should immediately close the trade. This kind of order can limit the further expansion of losses, so as to ensure maximum profits and minimize losses. There is no one-size-fits-all theory, no one-size-fits-all technical analysis method, and no one-size-fits-all analyst. Any clever theory, precise method, and superb analyst will make mistakes. Only a stop-loss order can save you from major losses. Stop-loss orders will always be your loyal friend, remember!

When working at high altitude, please fasten your seat belt.

The key lies in self-discipline

Many trading strategies and techniques have long been well known and even memorized, such as following the trend, setting stops, and making quick decisions. Why are there so many people losing money? Because many people can talk about it, but can't do it!

Just imagine, the market is either up or down, with 50% of the opportunities, and ten trades are counted as five losses and five profits. If you can make up your mind and show no mercy, you can stop your losses in time if you lose only a little every time you lose five times. After comprehensive calculation, it is not difficult to make more or less money.