The foreign exchange market is the largest financial market in the world. In this market, many profit myths have been achieved, but many people have lost their savings. This is why Mex group has always emphasized that we should look at foreign exchange transactions from an investment perspective, not Gambling and speculation, if you want to become an excellent foreign exchange trader, you must first learn these 7 commandments!
First Precept: Greed
Buddhism believes that "greed" is the great enemy of Buddhist practice and the root of all afflictions, so greed is listed as one of the fundamental afflictions. "Gluttony", "greed", "laziness", "jealousy", "pride", [lust], "anger", these are the seven deadly sins of human nature referred to by Catholic teachings. "Greed" ranked second, its seriousness can be seen.
If you observe carefully, it will not be difficult to find that the biggest characteristic of traders who blow up their positions and lose all their savings in foreign exchange trading is often "greed". After making a profit, they always want to win more and continue to bear huge risks in the market. If you lose, you want to get back immediately in a short time. They regard foreign exchange trading as a gamble, and when they see other people’s trading orders showing profits, they start to itch, open the board and start trading crazily. "Performance.
Because of "greed", we started to step into the foreign exchange market to study transactions, and we racked our brains to continue to make profits in the foreign exchange market! Mex group has always emphasized that if you continue to lose money, what you have to do at this time is not to trade every day, but to calm down and learn. Don't trade in the wrong way again and again, and you will not stop until you lose all your principal.
The Second Commandment: Fear
Another main reason why we cannot execute trading strategies well is "fear". Many foreign exchange traders start to fear the market and dare not trade after continuous losses. They stare at the market for a long time and finally find a good entry After the opportunity, he hesitates again and again, misses a good point, and after missing the opportunity in a row, rushes to make a deal, and enters the market at an unfavorable position.
After some foreign exchange traders set up a Martin-type position increase, they gave up the transaction during the process of increasing the position. The transaction that could have been profitable suddenly turned into a loss. These are all manifestations of "fear". To overcome fear is actually not as difficult as imagined. What we need is "review statistics". Long-term review statistics are to allow us to focus on learning a signal, take reassurance, and be decisive the next time we see a signal in the market Take the shot, overcome your fear.
The third precept: delusion
Many foreign exchange traders, because foreign exchange trading makes money quickly, they want to earn more after making a profit, and they can't stop. These are the manifestations of "crazy". This is especially true when facing losses, and they are unwilling to stop and rest. Watching the market all day long is their biggest fatal injury. Long-term watching the market is not only bad for the eyes, but also easily reduces judgment due to fatigue. It is recommended that you must concentrate on trading. If you feel a little tired, let yourself rest for a while, and it is not too late to trade when you are full of energy.
The Fourth Precept: Desire
If you want to say that the biggest fatal injury for foreign exchange traders is frequent trading! Due to the ease of operation of foreign exchange, most foreign exchange newcomers like to operate short-term transactions, because they are unwilling to wait for a long time. Short-term trading is inherently more difficult to grasp, but this is not the biggest problem. The biggest problem is that because of the short operation time and the desire for profit, many new friends will start to place orders frequently, but in fact the signals are not Not as much as we think, the result of long-term frequent orders is undoubtedly a loss! Mex group recommends that the ideal order should be no more than five transactions a day, and only after the signal is truly seen can the order be placed, so as to increase the hit rate and increase the profit!
Fifth Commandment: Love
Regardless of winning or losing, the entry funds must always be kept below 15% of the operating account. Keeping in mind the rules of entry capital and implementing it will keep you away from temptation when you win, and you will not lose yourself in wild gambling when you lose. No matter how much you love money and profit, you must strictly manage funds.
Sixth Commandment: Hate
Many traders hate losing, but don't set stops. In fact, stop loss and re-entry loss are the same thing. Stop loss is the ticket to enter the market, but not willing to stop loss is a passport to exit the market. If you can't stop the loss, then I advise you not to come to the foreign exchange market.
The Seventh Commandment: Laziness
As the saying goes: one minute on stage, ten years off stage. Many traders are too lazy to learn, study technical indicators, review statistics, and think. They only think that they can learn to trade and make long-term profits through copying orders. Obviously, this is unrealistic. And this is too random and undisciplined. Undisciplined trading is like stragglers fighting guerrilla warfare, which may be wiped out at any time. Many foreign exchange traders have caused many unnecessary losses due to lack of discipline, and regret it afterwards. This is very worthwhile. After all, it's all because of "laziness".
epilogue
Having said so much, in the final analysis, in fact, the core focus of foreign exchange trading is on "people". The market trend is a reflection of human nature. If we want to become an excellent foreign exchange trader, we should study hard and be rational and objective Facing the market, only by overcoming these weaknesses can we survive in the foreign exchange market for a long time and make good deals!
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