Do nothing to speculate on foreign exchange

The foreign exchange market belongs to the category of virtual economy. The real economy determines the virtual economy, and the virtual economy reacts to the real economy. At the same time, the virtual economy has relative independence. To use a philosophical language, matter determines spirit, and spirit reacts to matter. At the same time, spirit also has relative independence. Of course, this is not to say that the real economy is equal to matter, and the virtual economy is equal to spirit. The virtual and real here are transformed into each other.

The development of human understanding is also regular, and the understanding of the world is also gradually deepened. When we recognize a certain stage, we will raise certain levels of questions. Looking at it now, although the foreign exchange market belongs to the virtual economy, it also has its own movement characteristics, so there is no foreign exchange market that only falls but does not rise, and there is no foreign exchange market that only rises and does not fall. If it rises more, it will fall, and if it falls more, it will rise. There is a limit within a certain period of time.

Lao Tzu's "Tao Te Ching" believes that the characteristic of "Tao" is natural inaction. Although Tao is the "mother of the world" and the root of all things, it does not interfere with all things. Instead, it is based on the natural state of all things and allows all things to grow naturally ("Tao is the supreme, virtue is the precious, and it is always natural according to your order"). Similarly, those who act according to "Tao" only follow the natural state of all things to "assist" their development, rather than restricting and forcing them according to their own will ("to supplement the nature of all things, but dare not do"). This is "governing without action". Since "inaction" is truly in line with the natural nature of things and does things well, then "inaction and inaction".

Is it possible to think that the core of inaction as a way of thinking about foreign exchange speculation lies in knowing what one "cannot do" and knowing the boundaries of one's abilities and behaviors. Especially in the foreign exchange market with great uncertainties and extremely high risks, one must not forcefully jump into the "sea" with one's limited financial resources?!

The realm of inaction is high in "homeopathy", and only by following the trend and following the waves can it be really possible. We have seenforeign exchange marketIt is very much like the tide, when the tide rises, it is surging and unstoppable, showing the momentum of overwhelming mountains; and when the tide suddenly recedes, the energy quickly weakens in a short time, returning to the calm before the high tide, and when it gradually feels disappointed, another tide surges. There is no need to explore the real reason for the high tide in such a market, and it is difficult to explore. What is really valuable to do is to follow the trend. Stubbornness and stubbornness cannot keep up with the development of the trend, and may be eliminated by the market.

Nowadays, the scale of the foreign exchange market is expanding day by day, and the number of people participating in foreign exchange investment is increasing day by day. The daily turnover of the international foreign exchange market has increased from 800 billion US dollars in 1994 to 1 trillion 200 billion US dollars in 1995 and 1996, and has now reached more than 1 trillion 500 billion US dollars. 80% of the turnover is speculative transactions. Speculators buy and sell in the international market every minute and second, and large-scale transactions have been affecting the foreign exchange market. The entire international community is increasingly open, like a global village, and the freedom of international funds to enter and exit countries is increasing day by day. Global Payment systems such as CHIPS in the United States and CHAPS in the United Kingdom have made the transfer of funds faster, and can even be completed in an instant. International funds seem to have grown wings, and hot money has emerged, which not only affects the monetary policies of various countries, but also often distorts the reasonable price of the currency that the fundamentals should reflect.

Therefore, we small Huimin might as well point to "do nothing to govern", follow the trend, and make plans to move later. In the case of uncertain expectations, we should focus on risk control, look more and move less, and avoid major mistakes. Especially before the market is light and consolidated or may face major changes, it is a great opportunity for us to devote ourselves to research and prepare for the unfinished market. Only when there is sufficient research and preparation at this time, when the market arrives, can we recognize the direction of the trend and seize the opportunity. This means the study of various technical tools, the possible situation of political and economic fundamentals and their impact on the market.