13 tactics and skills of speculation in foreign exchange
Whether it is to invest in domestic market or foreign market, whether it is to invest in general commodities or financial commodities, the basic investment strategies are consistent, especially in the more complex foreign exchange market. Although there are differences in investment strategies, some of them are basic. For example, the summary of the strategies below is of considerable reference value to various investors.
(1) Speculation in foreign exchange should be based on idle capital
If investors invest with the necessary expenses of family life, in case of loss, it will directly affect the family's livelihood, and the chance of failure in the investment market will increase. It is difficult to maintain an objective and calm attitude when making money with money that should not be invested.
(2) Speculation in foreign exchange
Need to understand their own personality, prone to impulsive or emotional tendencies, serious is not suitable for this market, the majority of successful investors can control their emotions and have strict discipline, can effectively restrain themselves.
(3) Do not over trade foreign exchange
One of the principles is to keep the price of the fund three times as high as possible. If you don't have enough funds, you should reduce the number of sales contracts you hold. Otherwise, you may be forced to "cut positions" to free up funds due to lack of funds. Even if it turns out that your vision is accurate, it will not help.
(4) Face up to the market and abandon fantasy
Don't be sentimental, over looking forward to the future and remembering the past. A U.S. futures trader said: a person full of hope is a beautiful and happy person, but he is not suitable to be an investor. A successful investor can separate his feelings from his trading.
(5) Don't change your mind rashly
It is very dangerous to make a temporary decision based on price changes and market information.
(6) Make appropriate suspension
Day after day trading can slow your judgment. A successful investor said: whenever I feel mental state and judgment efficiency is as low as 90%, I start to lose money, and when my state is lower than 90%, I start to lose money, so I will put everything down and go on vacation for a few weeks. A short break can help you to re understand the market and yourself, and help you to see the direction of future investment. Investor motto: when you are too close to the forest, you can't even see the trees in front of you.
(7) Do not speculate in foreign exchange blindly
Successful investors don't follow others blindly. When everyone thinks they should buy, they wait for the opportunity to sell. When everyone is in the same investment position, especially when small investors follow suit, successful investors will feel dangerous and change their route. This is the same as the converse theory, when most people say they want to buy, you should wait for the opportunity to sell.
(8) Rejecting other people's opinions
When you grasp the direction of the market and have a basic decision, do not easily change the decision because of the influence of others. Sometimes other people's opinions may seem reasonable and prompt you to change your mind. However, it is only after the fact that your decision is the most correct one. In short, other people's opinions are only for reference, and their own opinions are the decision of buying and selling.
(9) When you refuse, wait and see
It is not necessary to enter the market every day. New entrants are often keen to enter the market. However, successful investors will wait for the opportunity and leave the market when they are confused after entering the market.
(10) Speculation in foreign exchange
When investing in the foreign exchange market, there are many psychological factors leading to failure. One of the most common situations is that when investors are faced with losses and they know that they can't be lucky, they are often hesitant and unable to make a decision at a moment. Therefore, they get deeper and deeper and lose more.
(11) Forget the past price
"Past price" is also a rather difficult psychological obstacle to overcome. Many investors are affected by the past price, resulting in investment judgment error. Generally speaking, after seeing the high price, when the market falls down, they will feel quite unaccustomed to the new low price. At that time, although various analysis shows that the future market will fall again and the market investment climate is very bad, before these new low price levels, investors will not only not sell their own goods, but also feel very "low" and have the impulse to buy. As a result, they will be forced to buy It's locked in. Therefore, investors should "forget about past prices.".
(12) Patience is also an investment
There is a saying in the investment market that "patience is an investment". It is believed that few investors can do this. People engaged in investment work must develop good tolerance, which is often a key to success or failure. Many investors, not because of their poor analytical ability or lack of investment experience, but because of their lack of endurance, buy or sell out too early, thus incurring unnecessary losses.
(13) Anti erosion position should be set for foreign exchange speculation
This is an important investment skill. Due to the high risk of the investment market, in order to avoid the loss in case of investment mistakes, we should place a stop loss order every time we enter the market. That is, when the exchange rate falls to a certain predetermined level and may fall, the transaction will be settled immediately. Therefore, this kind of calculation is an order to limit the loss, so that we can limit the further expansion of the loss.