In any investment market, the primary investment strategy is the same. But for the complex and changeable foreign exchange market, it is necessary to master general investment strategies. Still, on this basis, investors should learn and master specific practical skills because some investment skills that have been tested in practice will be full of philosophical significance and have solid guiding importance in practice. Today's editor will discuss personal foreign exchange trading and investment techniques.
Invest with "spare money."
Please remember that the funds used for the investment must be "idle funds"; that is, there is no emergency and proper use of funds for the time being.
The confidant is supreme
Knowing one person and another will play a hundred games. But as a confidant in the foreign exchange market, investors need to understand their personality because people prone to impulse or emotional tendencies are not suitable for this investment. Most successful investors can control their emotions, have strict discipline, and effectively restrain themselves. Therefore, the confidant can win in Hui Shi.
Face the market and abandon illusions
The market is real. Don't be sentimental. Looking to the future, remembering the past. A person full of fantasies, rich in emotions, and very exposed is happy, but he is not an investor. Successful investors can separate their feelings, stories, and trading.
Small households should not invest blindly
Successful investors will not blindly follow the opinions of others. When everyone is in the same investment position, especially when small investors follow up, successful investors feel dangerous and change the way forward. Blind obedience is the fatal psychological weakness of small investors. After the economic data was released, a piece of news flashed suddenly. Once they make a "breakthrough" on the 5-minute price chart, they immediately enter the market. I am not afraid that everyone will lose money together, but everyone will make money. In a sense, this is a normal phenomenon. Sometimes the market trend is misunderstood, or the situation suddenly reverses after the order is entered, which causes the order to be trapped. Even experts are not immune. However, when making a decision and responding after the fact, the most stupid behavior comes from the psychology of a small family.
To become a successful investor, one of the principles is to keep more than 2-3 times the capital at any time to deal with price fluctuations. If you do not have enough funds, you should reduce the sales contracts you hold. Otherwise, you may be forced to "cut positions" to free up funds due to insufficient funds. Even if the facts prove that your vision is accurate in the future, it will not help.
Don't change your mind lightly
If, after full consideration and analysis, the price of the day and the plan to enter the market have been determined in advance, the decision should not be easily changed due to the impact of currency price fluctuations. Decisions made temporarily based on the day's price changes and market news are usually hazardous unless investment planning highlights this.
When investing in the foreign exchange market, many psychological factors lead to failure. A common situation is that even if investors know that they cannot seize the opportunity, they face more and more losses. Still, they are often hesitant and unable to make a decision. Therefore, they get deeper and deeper and lose more and more. If you break your arm, it will fail.
When in doubt, wait and see for the time being
Investors do not have to enter the market every day. New immigrants are usually keen to enter the market for transactions, but successful investors will wait for opportunities. When they are confused or uncertain, they will leave the market first and wait for a while.
In times of adversity, leave the market to "rest."
Due to personal interests, investors have been in extreme tension for a long time. If you are profitable, then you will feel a little bit satisfied. However, if you are in adversity and continue to lose money or even make unnecessary mistakes continuously, you should be careful not to lose your sense of sobriety and calmness. At this time, the best choice is to leave the market and rest. In the end, the temporary gains and losses have passed, the swollen mind has calmed down, and the burden of thought has been eliminated. I believe that investment efficiency will be improved. There is a saying: "A general who does not rest is not a good general." If he does not know how to regain his strength, there is no way to defeat the enemy and withdraw from the city.
Patience is investment
There is a saying in the investment market that "patience is an investment," but it is believed that few investors can achieve this goal or truly understand its meaning. For those engaged in investment work, they must develop good endurance and endurance. Patience is usually a "multiplier" for investment success, related to whether the final result is positive or negative. Many investors do not lack analytical skills or investment experience but lack endurance, which leads to early trading or unnecessary losses. Therefore, every investor participating in the foreign exchange market should realize that patience is also an investment from their consciousness.
The past price, let him go
"Past prices" are usually quite tricky psychological barriers to overcome. Many investors are affected by past prices, leading to erroneous investment judgments. Generally speaking, after seeing high prices, they will feel very unaccustomed to the new low prices when the market drops. Although various analyses indicated that the market would fall again in the future and the market investment environment was very bad, investors would not only sell the commodities they held but also feel "low" before these new low prices. There is an urge to buy. As a result, I was firmly trapped after the purchase. Therefore, investors remember the "past prices" and then let go of the past.
Stop corrosion position, cut the meat
Set a stop-loss position (that is, at this time, you have reached the maximum loss position you can bear). It would help to cut the core bravely once the market reverses and the exchange rate drops to the stop-loss position. This is a critical investment technology. Due to the high risk of the foreign exchange market, to avoid losses due to investment errors, the exchange rate drops to a predetermined price every time we enter the market. It may fall, and we should settle the transaction immediately. In this way, the loss will only be limited and acceptable and will not be further expanded or even lost. Because even if we cut the meat temporarily, the investment capital still exists. If we leave it in the green mountains, we are not afraid of burning without firewood.
Don't be all-in-one
To conduct foreign exchange transactions, we must do our best. We must never trade all of our savings or all assets in the following manner. Because in this case, once the market itself cannot be correctly predicted, it will cause huge losses and even unable to extricate itself. At this time, the more obvious method is to implement the "pyramid plus code" method. If the market situation is clear and beneficial to you, please increase part of your investment. In addition, in the face of market adversity, we should pay more attention to preventing desperate thoughts from germinating.
Beware of the rebound after the sharp drop and the adjustment after the sharp rise
A sharp rise or fall in prices in the foreign exchange market will not rise or fall like a straight line. If the price grows too fast, it will be adjusted. If it falls too quickly, it will rebound. The adjustment or rebound range is very complicated and not easy to master. Therefore, after a sudden increase of 2300 or 5600 points in the exchange rate, you should be very careful and rather wait and see than follow up.
Learn to control risks
The foreign exchange market is hazardous. The main risk is that there are too many variables to determine the foreign exchange price. Although there are various theories and theories about foreign exchange volatility, the volatility of the foreign exchange market is often unexpected for investors. For foreign exchange market investors and operators, they should have an understanding of risk probability. That is to say, in foreign exchange investment, it is necessary to fully understand the risks and returns, the possibility of making and losing money, and the main problems to be prevented. If you do not have a correct understanding of risk control, you can buy and sell foreign exchange at will, so you will inevitably lose money.