Someone has done statistics. Regarding foreign exchange investment, the most frequently asked question is why novices always lose money when investing in foreign exchange. What should newbies do to make money in foreign exchange speculation? It can also be seen that novices will be more confused and more anxious than those investors who are already experienced in the foreign exchange investment market. Some people’s summary of foreign exchange investment is that only one out of ten people will make money. If such a conclusion really becomes a reality, then a large part of these ten people may be novices.
Why are novices more likely to lose money, and where are they not doing well?
- Poor risk control Risk control is usually mainly reflected in the setting of stop loss. When you earn a certain amount of money from a single order, if you want to make more profit, you can set a capital protection stop loss. If the market goes 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 amount and you judge that the market will continue to fluctuate, you can stop or reduce your position in advance.
- Simulated trading
Before real trading, it is very necessary for traders to conduct simulated trading. Simulated trading must be conducted for at least three months before real trading can be started until you are fully familiar with the basic principles of the market and trading. Of course, since simulated trading does not involve real capital gains and losses, there is a mentality of doing simulated trading and corporate trading. A big difference. It is easy for traders to form bad habits without discipline, which are difficult to eradicate over time.
- Superstition experts
Many new friends entering the market tend to choose an expert when watching reviews through different channels. Of course, there are many foreign exchange analysts who have good judgment, but this does not mean that they can bring you how much practical help in your actual operation. Assuming that you only listen to the introduction of experts, but ignore the corresponding dynamic profit, Stop loss and sudden strategic changes, then your operational behavior is likely to be affected.
Novices may not be able to adapt to the rhythm of foreign exchange transactions
Compared with the general gold exchange rate, stock changes, etc., foreign exchange transactions are much faster in pace. Maybe you are still asking why newbies always lose money when investing in foreign exchange? What should newbies do to make money in foreign exchange speculation? At that time, the investment trend of the entire foreign exchange market had already been reversed, causing novices to miss many good foreign exchange investment opportunities. Therefore, grasping the rhythm and timing is an important boost for novices to invest in foreign exchange. There is a common situation, that is, when the foreign exchange market is continuously rising, novices often dare not operate. It also proves that at this time your subjective mentality has not yet adapted to the rhythm of foreign exchange transactions. If you shrink in front of the right investment opportunity, the probability of losing money will of course increase.
Losing more and earning less is indeed the norm in the foreign exchange market
There are many investors doing foreign exchange investment, but those who are really proficient in the industry account for a minority. There are far more people who lose money than people who make money. This is the norm in the foreign exchange market. For this, every investor should be psychologically prepared. If you want to successfully join the team of money-making people, you must establish a good attitude, be familiar with the basic operation methods, and grasp the timing of the operation in good time.
Take profit and stop loss operations are very important
Want to solve why novice investors always lose money when investing in foreign exchange? What should newbies do to make money in foreign exchange speculation? These doubts must be very proficient in stop-profit and stop-loss operations. First of all, the take profit operation must be based on the foreign exchange market to maximize its own interests. Secondly, the number of stop-loss settings cannot be too small, but it needs to be adjusted to the corresponding value according to the changes in the market to minimize its own losses.
To make money in foreign exchange transactions, foreign exchange investors must learn to cultivate their patience and self-control. When you can be calm in the ups and downs of the market, and calmly deal with unexpected market conditions, you will be far from your goal. One step closer.
Two basic principles for the survival of the speculative market: trading with the trend and strict stop loss
However, for novices, do not blindly enter the market and blindly open an account to inject funds, otherwise you will lose money due to improper grasp. You must first download a software that simulates foreign exchange speculation. The funds on the simulated foreign exchange software are virtual, but the real foreign exchange market is real. Use virtual funds to perform foreign exchange operations for a few times. Wait until you are really familiar with it and really grasp the direction. Then, you can actually inject capital to make a profit. In short, more simulation, more research, and then if the trader is stable, the money will naturally slip into your pocket.
All in all, novices who invest in foreign exchange must watch and learn more first, to ensure that they have accumulated enough experience and response to market changes.
Only when you are able to operate can you seize a good opportunity for foreign exchange investment.