Any investor, whether he is a new Huimin or an old Huimin, or even a world-class investment guru, can hardly avoid such an experience—buying foreign exchange and getting caught. After analyzing a large number of cases, people discovered such a phenomenon: the real investment masters can often be freed from the quilt quickly, and many Xinhuimin may fall into the quagmire of long-term quilt.
Why can those investment gurus be able to solve the problem easily? The reason is that they have formed the ability to fight in Huihai in the long-term professional combat. Xinhuimin needs to go through many quilts before slowly developing the ability to unwind. In the final analysis, this question is a question of the level of stock speculation. Perhaps it can be said that unwinding is the essence of stock trading skills.
At this point, the author thinks of an interesting story circulated in the Buddhist world called Touwangjinlin. It tells about two monks walking by the river and seeing fishermen throwing nets there and catching a lot of fish in the nets. Some fishes have stronger vitality, they struggle and jump in the nets, and finally they start from Jumped out of the net. Zen Master Fengxian Shen said, “It’s so beautiful, beautiful, golden scales through the net.” He meant that the fish that has been caught in the net and can jump out is really amazing.
Another monk said, “It’s as if you never got into the net before.” What he meant by his response was, wouldn’t it be better if the fish were not caught in the net before? So, the Zen master said, “You are not enlightened”. What he meant was that you lack consciousness. Once the fish caught in the net, can they jump out? This is a big question, and it’s another matter.
In the foreign exchange market, how many people can jump out when they are “lived” on the net? This is certainly not a Buddhist question, but a major question of the philosophy of foreign exchange market survival.
Undoubtedly, when entering the foreign exchange market, it is inevitable that there will be a quilt. If you want to win in the Huihai fight, you must develop a kind of “transparent golden scale” ability.
Soros, the world investment master who once set off the financial turmoil that swept Southeast Asia, also has the experience of being trapped in the foreign exchange market. He believes that the key to investing is to know how to survive and learn to escape from the dead. He said, “In the foreign exchange market, you don’t want to go one way to the end. When you find that the situation is not right, you must exit as soon as possible. Even if you lose some money, you don’t always want to get it back right away. Preserving your strength is the most important thing.”
Soros believes that everyone has their own limitations. Although investors cannot be sure when their choice of foreign exchange is right or wrong, when mistakes occur, they would rather withdraw their investment sooner rather than later. This is like a poisonous snake biting a finger, just cut off a small finger when it bites, the later you make a decision, the snake venom will slowly penetrate your body until a person dies. However, decisively refers to how much courage and wisdom a person needs!
This concept of Soros forced him to sometimes take weird actions in the foreign exchange market, such as selling at low prices and buying at high prices. Just like in the foreign exchange market in 1987, he sold currencies at a low price. At that time, some people were puzzled by his actions. Soros said, “I did this to make a comeback tomorrow and continue fighting. The husband can bend and stretch, and temporarily retreat is the need of investment strategy. I don’t want to wake up and find that I am already The family was bankrupt, and it was impoverished.”
After the U.S. stock market crashed in 1987, Soros had already withdrawn his capital, avoiding greater harm. In this regard, his partner Jim Max believes that this is what makes Soros unique. At that time, many people did not believe that the stock market would collapse, let alone withdraw from the stock market. But Soros withdrew, he was confident enough to support him in doing so. “To be able to come back to fight in the future, I have to retreat early.” Soros said. Sure enough, Soros made a comeback in late 1987 with great success.
As the saying goes, “Keep the green hills, and don’t be afraid that there is no firewood”; “Tolerate the wind and waves for a while, take a step back and broaden the sky.” These tenacious warning mottos are actually also the survival mottos that lead Huimin ups and downs in the sea. Soros used this kind of survival philosophy in the foreign exchange market. Some people think that he is a conservative, but that is a one-sided understanding. You know, the greatest adventurers usually seem fanatical and reckless, but in fact, they may be the most foresighted and deliberate people around us.
Investors in the foreign exchange market need to develop the ability to take the initiative to unwind. Without this ability, they must not survive in the foreign exchange market. The foreign exchange market is a ever-changing market. Any news can influence the movement of the exchange rate. When investors are in it, it is sometimes difficult to judge whether things are true or false. Often when the foreign exchange market forms the head and goes out of the downward channel, they discover the truth of the news. Value, realizing that the exchange rate has already plummeted when the action was taken. Therefore, when investors discover the direction of the exchange rate movement in the intraday market, when they are not running according to their own trajectory, the most sensible operation strategy is to leave in time and exit to wait and see. I believe that as long as investors learn this trick, they will have a greater chance to let the storms rise in the ever-changing foreign exchange market and sit still on the fishing boat.