In recent years, foreign exchange has been welcomed by many people as a popular financial management method. Moreover, foreign exchange transactions are also "big and small" trading methods. People of all ages have a strong interest in foreign exchange, but many people who have just started foreign exchange transactions know why this foreign exchange is so unfriendly to novices and often suffer losses? Many people feel very distressed. Today I will tell you why novices like to lose money.
It is often heard from traders that this is a technical problem. There are certain reasons for technical problems, but not all. Technical analysis includes a lot of content, and actual upside investors only need some of them. It is not difficult to master these contents. Most novice investors lose money because they have problems in some basic areas, which ultimately boil down to psychological problems. Next, I will explain to you why novices are more likely to lose money without taking any measures?
Unable to fully control the risk
Risk control is usually mainly reflected in the stop loss setting. When you earn a certain amount from a single order, if you want to make more profits, you can set a breakeven stop loss. If the market moves in the opposite direction, you will not lose your principal, or you can increase or decrease your position appropriately to maintain stability and expand profits. If the loss reaches a certain level and you judge that the market will continue to fluctuate, you can stop or reduce your position early.
Before making an offer, it is necessary for traders to conduct virtual transactions. Before starting the official quotation, the virtual transaction must be carried out for at least one month. Of course, before you are fully familiar with the basic principles of markets and transactions, virtual transactions do not involve actual capital gains and losses, so virtual transactions and corporate transactions will have a big difference in mentality. It is easy for traders to develop bad habits without discipline, and these habits are difficult to eliminate over time.
The superstition of the "brick family"
Many new friends entering the market tend to choose experts when watching reviews through different channels. Of course, there are many foreign exchange analysts with good judgment, but this does not mean that they can bring a lot of practical help to your actual operation. If you only listen to the introduction of some "spoken words" and ignore the corresponding dynamic profits, stop losses and sudden strategic changes, then your business behavior is likely to be affected.
Foreign exchange trading is a long-term business with a test mentality. Investors need to maintain a good trading mentality, constantly learn and summarize what they have learned, constantly change their business habits, and form their own trading system. The risk of trading itself makes it a special business, which is why only 1% of foreign exchange novices can "survive" now.