Novices can open a trial account first to experience real trading, and the profits can be withdrawn.
Forex trading is not a gambling market, but a gaming market. Don't believe in luck. With luck, you may be able to do 10 times from 1, but it can't help you from 10 to 100, from 100 to 1000, but it will eventually return to zero.
I have been doing foreign exchange trading for 10 years, and I have seen too many people come in and out of this market. Some people left the stage properly after trading for a period of time; some people luckily found the trick of making profits after trading for a period of time.
Of course, there are only a few people who can make stable profits, but none of them rely on luck. They all rely on their own trading wisdom and strict discipline to achieve success.
And if we want to make money in the foreign exchange market, we can't work behind closed doors, we must keep learning.
Over the years of foreign exchange trading, I have seen a lot and learned a lot. I found that the vast majority of people who make money in the foreign exchange market are strictly implementing the following rules:
01
Prerequisites for Forex Investment
1. Self-life is guaranteed 2. Family life is guaranteed 3. Do not invest with urgent money 4. Do not invest with borrowed money 5. Do not invest with credit card money 6. Invest with spare money and reserve a certain amount of cash for emergencies.
Only by doing the above points, you will not care about temporary gains and losses when trading foreign exchange, let alone affect your life and transactions because of temporary gains and losses.
02
About full-time or part-time
Some foreign exchange traders are full-time traders, while others are part-time traders. If you want to do foreign exchange trading, you should choose an investment method that suits you according to your time, capital, technical level, etc.
Investment style: full-time trading
1. A lot of time requires skill. 2. More funds 3. Appropriately invest more in high-risk and high-return varieties. 4. If you have enough funds, diversify your investment
Investment method: part-time trading
1. Less time, general business. 2. More or less funds. 3. Low investment risk varieties, long-term investment. 4. If you have a lot of funds, it is best to diversify your investment. 5. It is best not to invest in partnership.
[Note]: Regardless of full-time or part-time, if the amount of funds is small, you should not make diversified investments. Because of the small amount of funds, diversification of investment will not reduce the risk much, but will divert the energy of traders and increase the risk of trading.
03
Top 10 mistakes in foreign exchange investment
Once foreign exchange trading enters a misunderstanding, traders can easily fall into the predicament of liquidation. The following are the 10 most common misunderstandings in foreign exchange investment, and I hope traders can avoid them:
Full position trading - full position will lose
Frequent transactions - lack of technical guidance
Operation against the trend - small probability and high risk
Locked trading - do not accept the fact of loss
Pulling down and raising the average position price——wrong on top of mistakes
Measure the top and bottom, no stop loss - find reasons for mistakes
Empty when there is more, and more when there is empty—too much pursuit of perfection is aimless
Listen to the news, blindly follow the trend - lack of understanding of the market
Not good at self-examination, suspicious of the market—fear of the market
Develop a long-term trading plan - the future is uncontrollable
04
Reasons for major losses for novices
For so many years of foreign exchange trading, I have seen too many novices enter the market with confidence but suffer heavy losses or even go out. The following is the reason why the author concluded their major losses based on the observations of the past 10 years.
1. It takes hundreds of times to die from 10,000 to 100,000, and only one time to go from 100,000 to 0. 2. Fantasy against the market and against death, don't fight against the medium and long-term trend. 3. Frequent trading cuts positions and dies, and the heart will soon be caught out of the market following market fluctuations. 4. Procrastination is equal to slow suicide. 5. Those who die are too greedy
05
Forex Success Ideas
1. Go with the trend, don't fight for the flow of water 2. Focus on the big picture and start small
06
Eight right and eight wrong in the foreign exchange market
It is right to operate with the trend, and it is wrong to go against the market—once the trend is formed, it is difficult to change it in a short time
Take light positions as right and heavy positions as wrong——positions affect attitudes, and attitudes affect decision-making
Contentment is right, greed is wrong—greed is the enemy, contentment is the decisive factor
It is right to stop the loss and protect the profit, and it is wrong to let it go—preserving capital first, making money second
Take objective operation as right and subjective analysis as wrong——Operate objectively and abide by the rules
It is right to wait and be patient, and it is wrong to be impetuous and impulsive - cultivate patience and act when the time is right
It is right to increase the size of the profit, and it is wrong to increase the position under the quilt - the profit is the right direction, and the quilt is the wrong direction
It is right to be calm, and it is wrong to worry about gains and losses—the essence of trading is the confrontation between human nature and mentality
07
Forex Advice
1. Establish your own set of trading rules that have been proven to be profitable through experiments, and constantly modify your own trading rules to make them perfect day by day.
2. Observe discipline, overcome fear and greed, handle your finances in a low-key manner, remember that foreign exchange trading is risky, always respect the market, and be an insignificant member of the market.
08
transaction program
Face up to the market, abandon illusions, and not be emotional
1. There is a stable set of operating basis in the trading system, which is consistent from beginning to end.
2. After the operation basis is determined, what is needed is to wait and execute.
If there is a fixed job, it should be operated according to the process, neither early nor late. Although the board changes thousands of times, the working procedure is fixed.
3. Law is the foundation of a country, and rules and procedures are the foundation of successful foreign exchange transactions.
4. There are many temptations in foreign exchange, which make people feel impatient. Wanting to get rich overnight is the enemy of fixed procedures.
09
operating principle
1. Resolutely refrain from making incomprehensible market prices. 2. Resolutely refrain from making orders against the market, do not be greedy for small profits, do not make rebounds in adversity markets, and do not make adjustments during growing trends. 3. Do not do consolidation and turbulence in the market; Dissatisfied position operation; 5. Stop loss firmly without hesitation.
10
money management
1. Total holdings: less than 50% of funds. 2. Opening a position: 10%-15% of the capital. 3. Increase position: generally use 20%-25% for a single variety. 4. Stop loss: The maximum total loss of any single product is generally within 5%. 5. Do not increase your position if you lose money. Generally, you will consider increasing your position after making a profit. 6. Only with a stable mentality can you be profitable.
11
remember
1. Do not invest with surplus funds. 2. Timid, impulsive, daring to lose but not to make, not suitable for investment. Successful investors can control their emotions and have strict discipline. 3. Don't over-trade 4. Face the market squarely and don't fantasize. 5. Make a proper suspension of trading, so that you can't see Mount Tai. 6. Don't follow the trend blindly. 7. When you are not sure, wait and see temporarily. 8. Make a decisive decision and never get stuck or miss the opportunity. 9. Forget the past price. 10. Patience is also an investment, know how to wait, and know how to give up.
12
so said the master
1. 95% of the profits are created by 5% of the transactions 2. Successful transactions - long-term, stop loss, follow the trend, light positions 3. Simple to win
13
mature trading judgment
1. Stable positive returns 2. Signals are stable and closed. 3. Risks are controllable 4. Reproducible trading models
14
The most important thing is to establish your own trading style rules
1. Don’t guess whether the market is full or empty. After the market gives a direction, there is usually a long way to go, and you will not change direction easily. Don’t expect the market to turn every day, and focus on following the trend.
2. Look at the direction and turn of the market, and you must not use the K-line of one or two days to draw conclusions.
3. See the direction clearly, control the position, exit in time if you make a mistake, and stick to your position if you make a mistake.
4. Learn to exit profitably.
5. Overcome fear and greed.
15
There are laws to abide by, laws must be followed, law enforcement must be strict, and violations must be investigated
1. Fundamental analysis determines the general direction of prices, and technical analysis determines the entry and exit points
2. Plan your trade, trade your plan
3. Summarize the investment methods that suit you.
4. The price trend tells us what to do (buy or sell)
5. When entering the market, decide when to enter the market.
6. Fund management determines how much money to invest in the transaction. 7. Set stop loss and take profit, and tell us when to leave the market. 8. Hold profitable orders for a long time. 9. All loss-making orders will be dealt with immediately. 10. Stop loss is the life of foreign exchange. 11. Taking advantage of the trend is the way to survive in foreign exchange.
16
transaction cycle
Ordinary investors: medium and long-term investment
Special investors: short-term investment
17
transaction attitude
1. Judge the trend and follow the trend. 2. Market entry point, grasp the correct opportunity to enter the market. 3. The amount of funds, do a good job in fund management. 4. Stop loss point (stop profit point), so that each profit and loss can be controlled. 5. Have a stable mentality, as long as you have funds, you will have a lot of opportunities. 6. Pursue a stable and long-term profit model, the one that suits you is the best. 7. Do not pursue huge profits, pursue long-term and stable income, and pursue reliability, not profit maximization. 8. Pursue making money over the years, rather than getting rich overnight, earning often rather than making a lot of money. 9. Reduce unnecessary transactions, and you are not far from success.
18
trading philosophy
1. Keep an eye on one product; 2. The simpler the better, the simpler is beautiful, the simpler is stable, and the simpler is easy to implement. 3. Develop the habit of reviewing after the market closes. 4. The incoming and outgoing signals should be consistent. 5. Develop a good habit of trading on the right side. 6. Keep a stable mentality and grasp the general trend of the market. 7. Don't trade with heavy positions. Mature operators should also trade with light positions. 8. The trend market is for the medium and long-term, and the shock market is for the swing. 9. Do long when the exchange rate is above the large moving average, and short when the exchange rate is below the large moving average. 10. The relationship between open interest and exchange rate should be clear. If the rising position increases, you can go long, and if the falling position increases, you can go short. Be vigilant when the rising position is reduced, and be vigilant when the falling position is reduced. 11. If you are long, you must be the strongest currency pair that is rising, and if you are short, you must be the weakest currency pair.
19
Contents of the trading system
1. Time to enter the market 2. Time to exit 3. When to stop the loss if there is an error in entering the market 4. The maximum loss control range 5. How much money to use when entering the market 6. When to increase or decrease positions 7. How to deal with unexpected news or non-human factors 8. Self-control, strictly implement the above principles. After doing what should be done, all that remains is to wait, and to wait patiently.
Finally, many friends may feel that easier said than done. But foreign exchange trading is anti-human. The real strength of a master is not that he has unique trading rules, but that he can strictly implement the rules he formulated.
I hope that you can also use this to sort out a set of trading rules that apply to yourself, and strictly implement them, and continue to optimize during the implementation process. I believe you will eventually succeed!
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I hope this article can make foreign exchange traders get out of the confusion when they are in confusion. Old rules, if you haven't understood it, please bookmark it first! Welcome to leave a message to communicate with the editor!
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