Twenty strategies for foreign exchange trading keep newcomers from losing money

In any investment market, the basic investment strategy is the same. But for complex and changeableforeign exchange marketIn other words, it is necessary to master the general investment strategy, but on this basis, investors should learn and master certain practical skills, because some investment skills that have been tested by a lot of practice are not only full of philosophical implications, but also have strong guiding significance in actual combat. We have summarized here 20 foreign exchange trading and investment skills advocated by many foreign exchange market experts for readers' reference, hoping that investors can benefit from it.

1. Invest with "spare money"

Remember that the money used for investment must be "spare money", that is, funds that have no urgent and accurate use for a while. Because if investors invest in the necessary expenses of family life, if they lose money, it will directly affect the family's livelihood. Or, when making money with money that should not be used for investment, they are already at a psychological disadvantage, so it is difficult to maintain an objective and calm attitude in decision-making, and the chance of failure in the investment market will increase.

2. The confidant is the best

But in the foreign exchange market, the confidant is the best. Investors need to understand their own personality, because people who are prone to impulsive or emotional tendencies are not suitable for this investment. Most successful investors can control their emotions and have strict discipline, which can effectively restrain themselves. Therefore, the confidant can ultimately win in the foreign exchange market.

3. Face the market squarely and abandon illusions

The market is real, don't be emotional, look forward to the future and reminisce about the past. A senior trader said: A person full of fantasies, rich emotions, and very exposed is a beautiful and happy person, but he is not suitable for being an investor. A successful investor can separate his feelings, fantasies, and transactions.

4. Small businesses should not invest blindly

Successful investors do not blindly follow the opinions of others. When everyone is in the same investment position, especially those small investors follow suit, successful investors will feel dangerous and change course. Blind obedience is a fatal psychological weakness of "small" investors. As soon as an economic data is published, a news flash suddenly appears, and as soon as the 5-minute price chart "breaks through", they rush into the market. I am not afraid that everyone will lose money together, but I am afraid that everyone will make money. In a sense, sometimes it is normal to misread the market trend, or the situation suddenly reverses after entering the order, so that the order is stuck. This is a normal phenomenon, even for experts. However, when it comes to how to make decisions and deal with them after the fact, the most stupid behavior is rooted in the psychology of small households.

5. Do not overtrade

To become a successful investor, one of the principles is to keep more than 2-3 times the capital at any time to cope with price fluctuations. If you don't have enough funds, you should reduce the trading contracts you hold, otherwise, you may be forced to "close your position" due to insufficient funds to free up funds, even if your vision later proves to be accurate.

6. Have a set idea, don't change it lightly

If, after full consideration and analysis, the price and plan for entering the market on that day have been pre-determined, do not easily change the decision due to the impact of immediate price fluctuations. Temporary decisions based on changes in the price of the day and market news are generally very dangerous, unless it is a flash of investment.

7. Make an immediate decision

When investing in the foreign exchange market, there are many psychological factors that lead to failure. A common situation is that investors face increasing losses, and even know that they can't take chances, but they often hesitate and fail to make a quick decision, so they get deeper and deeper, and their losses increase.

8. The opinions of others are not implemented

This is not to advocate authoritarianism. It is important to know that only you among investors are responsible for your investment results. When you have a basic decision about the direction of the market, do not change your decision easily due to the influence of others. Sometimes the opinions of others will seem reasonable and prompt you to change your mind, but later you find that your decision is the most correct. Therefore, the opinions of others are always just a reference, and your own opinions are the decision to buy and sell.

9. Uncertain timing, wait and see for the time being

Investors do not have to enter the market every day. Beginners are often enthusiastic about entering the market, but successful investors will wait for the opportunity. When others enter the market and feel confused or unsure, they will leave the market first, temporarily holding a wait-and-see attitude.

10. Stop buying and selling appropriately

Day after day of trading can make your judgment gradually dull. A successful investor once said: Whenever I feel that my mental state and judgment efficiency are below 90%, I start to lose money, and when my state is below 90%, I start to lose money. At this point, I will drop everything and go on vacation. A short break from the market can help you re-understand the market, re-understand yourself, and better help you see the direction of your future investments. Remember, if you are in the forest for a long time, you will not see trees.

11. In times of adversity, leave the market for "rest"

Investors are in a state of extreme stress for a long time due to the gain and loss of personal interests. If you make a profit, there is still a little satisfaction to comfort you; but if you are in adversity, you are constantly losing money, and even making unnecessary mistakes, you must be careful at this time. Don't lose your sobriety and calmness. At this time, the best choice is to put everything aside and leave the market to rest. When the break is over, the temporary profit and loss are over, the inflated mind has been calmed down, and the burden of thinking has been removed. I believe that the efficiency of investment will be improved. There is a saying that "a general who does not rest is not a good general." If you don't know how to rest and recuperate, you can't talk about breaking the enemy and pulling the city.

12. Patience is also an investment

There is an adage in the investment market that "patience is an investment", but I believe that few investors can achieve this, or really understand its meaning. For those who engage in investment work, they must develop their own good tolerance and endurance. Patience is often a "multiplier" of investment success, and the final result is positive or negative. Many investors do not have low analytical skills or lack of investment experience, but simply lack patience, which leads to premature buying or selling, incurring unnecessary losses. Therefore, every investor involved in the foreign exchange market should realize from their own consciousness that patience is also an investment.

13. Past prices, let him pass

The "past price" is often a rather difficult psychological barrier to overcome. Many investors are influenced by the past price, which makes their investment judgments wrong. Because generally speaking, after seeing a high price, when the market falls back, they will feel quite unaccustomed to the new low price. At that time, although various analyses showed that the market would fall again, and the market investment climate was very bad, investors would not only not sell their holdings before these new low prices, but also feel very "low" and have the urge to buy. As a result, investors will be firmly entangled after buying. Therefore, investors remember that the "past price" and let it go completely.

14. Anti-corrosion position, cutting meat

Set a stop-loss level, (that is, at this point, you have reached the maximum loss position you can afford), and if the market reverses and the exchange rate falls to the stop-loss point, have the courage to cut the meat. This is a very important investment skill. Because the foreign exchange market is quite risky, in order to avoid losses in case of investment mistakes, we should set a stop-loss order every time we enter the market, that is, when the exchange rate falls to a predetermined price, it may fall, and immediately close the trade. In this way, the losses that occur are only limited and acceptable losses, and the losses will not be further expanded or even lost. Because even if the meat is cut temporarily, the investment capital is still there, and if the green mountain is left, we will not be afraid of running out of firewood.

15. Don't go all out

Engaging in foreign exchange trading, you must do what you can, and you must not take a gamble. You must invest all your life savings or all your family wealth like a big bet. Because in this case, if the market situation itself is not predictable, there is a possibility of big losses or even self-extrication. At this time, the more knowing approach is to implement the "pyramid up the ante" method, first make a part of the investment, and if the market situation is clear and favorable, increase the part of the investment. In addition, it is more important to pay attention to the time of market adversity, and you must prevent the germination of a desperate mentality.

16. Don't make mistakes for a few points

In foreign exchange trading, don't blindly pursue whole numbers when making a profit. In practice, some people set a profit target for themselves after establishing a position, such as making enough $200 before leaving, and their psychology is always waiting for this moment to come. After making a profit, sometimes the price is close to the target. At this time, the opportunity to make a flat profit is very good, but it is only a few points away. They could have collected money in a flat trade, but they are hindered by the original goal. They missed the best price while waiting and missed the opportunity. Remember that it is not worth the delay in order to compete for a few points.

17. When the situation is wrong, counter-attack

Sometimes you buy and sell with the market, but when you enter the market, it is close to the end. You should pay attention to the fact that once a reversal occurs, if the situation is not right, you should counter-attack. For example: after buying in the long market, the market price does not develop. Immediately the market price rallied and fell sharply. Don't panic at this time, it is best to reflect. If you can decide that the current trend is a reversal, you must immediately close your position and counter-attack.

18. Establish a position when looking for a breakout

A market is a situation in which the market fluctuates in a narrow range, the buying and selling forces are evenly matched, and the situation is temporarily in a state of confrontation and saw-saw. Whether it is a market in a rising market or a market in a falling market, once the market is over and the resistance or support level is broken, the market will break through and make a sudden leap forward. For experienced investors, this is a good time to enter the market and build positions. If the market is a long-term pass, the position established when the market is broken will benefit.

19. Be careful of the rebound after a sharp drop and the adjustment after a sharp rise

In the foreign exchange market, a sharp rise or fall in the price will not rise or fall like a straight line. If it rises too quickly, it will always be adjusted, and if it falls too hard, it will also rebound. The magnitude of the adjustment or rebound is more complicated and not easy to grasp. Therefore, after the exchange rate rises by two or three hundred points or five or six hundred points, one should be extra careful. It is better to wait and see than to follow up rashly.

20. Learn to manage risk

The foreign exchange market is a very risky market, and its risk mainly lies in the fact that there are too many variables that determine the price of foreign exchange. Although there are various theories and theories about foreign exchange fluctuations, the fluctuations of the foreign exchange market still often surprise investors. For foreign exchange market investors and operators, it is especially necessary to learn a little about the probability of risk. That is to say, in foreign exchange investment, it is necessary to fully understand the risks and benefits, the probability of winning and losing money, and several major issues of prevention. If there is no accurate understanding of risk control, you can trade foreign exchange at will, and lose money is inevitable.