Strategy is more important than tactics, which is very critical in foreign exchange trading. Many people think that I need to know a method and a method of tactics when doing transactions. In fact, the strategic level is more important. In this issue, we will mainly talk about scientific investment attitudes and behaviors in foreign exchange transactions.
The original intention of entering the trading market
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Whether it is stock, futures or foreign exchange margin trading, they are all derivatives of trading, so what is your original intention to enter the trading market?
Many friends thought this way at first, I want to spend part of my usual salary as an investment, and then earn a little money, buy a pack of cigarettes, drink a little wine, or go on a trip with three or two friends. In the beginning, everyone basically didn’t have too many expectations. Sometimes people would ask you how much money you can make from trading? You might say that you can’t make much money, just before a meal.
In fact, everyone's original intention was not a problem at the beginning, but as the transaction continued to deepen, and as they seemed to have mastered some trading experience, everyone's ambitions began to grow. The left side is heaven, and the right side is hell. Most people’s original intention of trading is in the middle at the beginning. As time goes by, you may not even know what your original original intention is. Because the original intention is different, because as the transaction continues to deepen, the change of your original intention and your own extravagant expectations for the transaction make your trading behavior also change. So let's go back and think about it, how did I get into the trading market in the first place? What do I want most from trading? It’s really like what I thought at first, I want to earn money for a meal, or I want to earn as much as some trading masters do on an annualized basis.
Stability is more important than sudden profits
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Is there really a business that can make a profit without losing money in the trading market? Someone may tell you that his winning rate is 100%, or 99%. In short, he can make money in almost every transaction. Is there really such a transaction? This is only a theoretical situation, and most people will never find such a way throughout their lives.
Stability is more important than huge profits. This involves what is our original intention of trading. Do you want to earn only one meal a month and have a happy meal with your family, or do you want to use the money you earn to give The family can change a house, travel abroad, and even achieve financial freedom. Some friends said that my trading is doing very well, doubled in one month, doubled in two months, etc. Such examples have happened to many traders.
No matter how many 100% transactions you have made, that is to say, how many times you have doubled, as long as your retracement is 100% in one transaction, the account balance will be 0, and your previous efforts will be in vain. Many people have encountered such a problem. After doing 10 transactions, 9 of them succeeded, and once they failed, their positions were liquidated. The average annualized rate of return in a large time period is one of the criteria for measuring the level of transactions. A 10-fold increase in a month is not a skill, but a 10-fold increase in 10 years is the real skill.
living is more important than making money
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Living here refers to living in the foreign exchange market, that is, you always have your own principal. Some traders seem to be very prosperous in the trading market. Maybe they were active by your side last month or last year, and often post some good orders, or make their trading results public. You will be very envious of such people. You may I think such a person is very powerful. Although he is not an international investment master, he has indeed made money. Everyone is very envious of this and hopes to become such a person.
But later you will find that after a year or two, this person has disappeared from your side. One day you ask him how he is doing with his recent transactions, and he will say no, and do something else. This in the end is why? He traded very well in the first two years, why didn't he do it suddenly? Because his principal is gone, he is beaten in the trading market.
In trading, "the leftover is king", that is to say, your survival in the trading market is not judged by how much you make, but how many years you can (live) in the trading market. Some people have survived in the trading market for 10 years, or even 20 years. Survival here does not refer to the survival of you exploding positions again and again and making continuous deposits, but only depositing once, constantly tempering yourself, and constantly trading. In the middle of the year, you did not deposit money due to liquidation, so that you are eligible to survive in the trading market.
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