Foreign exchange trading on a foreign exchange trading platform is a kind of risky investment. For novices, foreign exchange speculation must be done with caution. Huishang Jun summarized some years of experience in foreign exchange speculators and shared with investors.
Use your "excess" money to fry.
Foreign exchange speculation is a risky investment, especially for novices. When speculating foreign exchange, it is not advisable to invest through borrowing or saving their necessary funds because if they lose money in foreign exchange speculation, they will lose money. All the game fails. Therefore, it must be done when one's conditions permit and mature, that is to say, use one's own "excess" money to speculate. In this way, even if you fail, it will not affect your life.
To understand the risks, we must control the risks.
As far as the foreign exchange market is concerned, there is an excellent risk for foreign exchange speculators because there are too many price variables in foreign exchange, so foreign exchange speculators must be aware of the enormous stakes in foreign exchange speculation. Of course, just recognizing this is not enough. It would help if you also worked harder to learn more about risk probability through various methods to prevent risks to a certain extent better. The lessons of more foreign exchange speculators failing to lose money tell us that you can’t have a more accurate understanding of risk control when investing in foreign exchange. Still, you can conduct foreign exchange investment transactions at will and eventually lose money; it is not accidental. Is inevitable.
Investment decisions should be decisive.
Many foreign exchange speculators, especially novices, because they lack confidence in themselves. They like to ask some foreign exchange experts for advice. This behavior is undoubtedly correct. But if you think that what the other party said is definitely or entirely accurate when you speculate in foreign exchange, this understanding is somewhat absolute. Regarding the suggestions of others, foreign exchange speculators are at most just a reference. You can refer to the tips of others and add your serious analysis. If the two are combined, the victory can be more significant. Therefore, no matter when to speculate in foreign exchange, regardless of the opinions or suggestions of others, the final decision to assume in foreign exchange should be decisive and come up with your ideas.
You should know how to leave when you should leave the market.
If you do anything for a long time, there will be a sense of boring, and the same goes for speculating in foreign exchange. If foreign exchange speculators trade day after day over time, it will undoubtedly cause mental fatigue. At this time, errors in judgment are likely to occur. Therefore, if it takes a long time for any foreign exchange speculator, you must learn to leave temporarily. Otherwise, it will not bring you the joy of making foreign exchange but the pain of losing money after speculating in foreign exchange. When you feel full of energy and your judgment is more responsive, you may show your skills even more, when you come back then.
You have to cut when you need to cut the meat.
Since foreign exchange speculation is a high-risk investment, if there is a big mistake, it may never be able to turn around. Therefore, a stop-loss position must be established for each operation to avoid significant losses, which is very important to reduce losses. In many cases, foreign exchange speculators may profit based on their judgment and analysis. Still, there is no guarantee that there will be no significant market reversal when they chase in. If the foreign exchange speculators do not stop loss, it may bring a Larger loss. Therefore, every time a foreign exchange speculator enters the market, it is good to place a stop-loss order. In doing so, even if the foreign exchange speculators seem to be losing money on the surface, some of their capital remains. As the saying goes: "Keep the green hills, don't be afraid that there is no firewood." Therefore, it is essential to stop loss in foreign exchange speculation.
Any foreign exchange speculator should always be an ordinary mind to do what he can, rather than be desperate. Some people may say that if there is no courage, there will be no output. This sentence has some truth, but this courage will make foreign exchange speculators take many risks. Therefore, foreign exchange speculators don’t want to make themselves rich overnight. Plainness is indeed true. If you decide to find the right opportunity to make a desperate move, you must consider it in advance. If you haven’t considered it yet, it’s best. Well, don't take it lightly.
A sharp rebound, sharp rise, and adjustment without rash follow-up
For the entire process of the foreign exchange market, there will be certain adjustments if it rises too quickly, and if it falls too fast, there will be an inevitable rebound. Regardless of the adjustment after the rise or the rebound after the fall, many foreign exchange speculators are often eager to try and want to seize this investment opportunity. Many foreign exchange speculators end up in losses even if they catch them. After all, the relative size of the adjustment or rebound is not easy to grasp. Therefore, for the rapid rise and fall of the exchange rate Adjusting and rebounding, foreign exchange speculators should still be extra careful, rather than wait and see, and do not follow up hastily; maybe your mistake will bring you undue regrets.