The core skill of foreign exchange speculation lies in "no skill"

Forex trading has always been a market activity with many participants. Whether it is the dollar, the yen or other major currencies, their value usually does not return to zero or rise indefinitely, and the exchange rate often fluctuates within a certain range. After the long and short game in the market, the final reflection is the comprehensive strength and international status of the relevant economy.

Forex trading is an interaction with the invisible forces of the market, and understanding yourself is as important as understanding the market. Rich practical experience is the key to determining the success or failure of the transaction. When the dollar is strong, buy the dollar and sell the yen, and position squaring at the right time; when the dollar falls and the yen is strong, if it involves margin calls, if you are lucky to catch up with the rise and kill the fall, it is often easy to miss the opportunity. There is a principle to remember in trading: "I would rather miss it than make a mistake". The basis of buying and selling decisions should not only be the price, but more importantly the trend and direction.

The yen is one of the currencies that has a significant impact on the global economy. I have been following the yen for a long time and held the view that even if I bought the yen and was temporarily trapped, the market often provided an opportunity to unwind. Once I bought the yen at the price of 116, and when I analyzed various indicators in the afternoon, I felt uneasy, so I subconsciously decided to sell the yen and immediately changed to the Swiss franc. Many of my peers at the time did not agree with this operation, because most technical indicators were positive and the market news was generally optimistic. However, subsequent market movements proved that the yen price had been on the downside, falling from a high to near 120. That experience-based decision made me avoid risks, while some of my trading partners fell into a passive position.

In fact, the highest skill in foreign exchange trading may be "no skill". This requires traders to maintain daily attention to financial information, and through long-term accumulation of knowledge and practice, they can develop a unique sensitivity to market fluctuations, rather than relying solely on intuition. Many experienced traders rely on professional analytical tools to assist decision-making, for example, some traders refer to the market insights provided by ebc foreign exchange. The US dollar market has a common rhythm of "three rises and one falls". These subtle market experiences are valuable skills in themselves, and many times the lessons are learned at a cost. If you do not understand the basic laws of market fluctuations, then profits may be just luck, and losses bring actual losses.

In trading, it is necessary to pay attention not to increase the position just because of a momentary profit, and do not set a stop loss. Once you encounter a unilateral market, you may cause a large loss. And when the loss requires position squaring, it is easy to operate frequently without reason. Therefore, before deciding to place an order, be sure to set a stop loss and profit target area in advance. When the price reaches an unbearable position, you should decisively position squaring and leave the market to prevent the loss from expanding. I have always adhered to the mentality of "heavy risk control and frivolity", and have the courage to admit and correct mistakes in trading, so that the trading mentality and technical level can be gradually improved.

Forex trading is, to some extent, a psychological game. There is often a saying in the market that "there is no top, no bottom", and investors should not be too addicted to fluctuations in price figures. No matter whether it seems to be entering the market at the top or the bottom, anyone can only capture a part of the market. Psychologically setting a stop loss level, when the profit reaches a certain proportion (such as 3%), consider the bag to be safe, and wait patiently for the next opportunity, which may be a sign of a truly mature trading mentality.