Several stages of transition from Xiaobai to investors!

Daily foreign exchange disk analysis strategy map sharing
alien space

The first stage: learn to look at the point.


When you first enter a market, the first thing you will come into contact with will be various comments or suggestions, some of which will refer to indicators such as RSI, KDJ, MACD, etc., and some will refer to trends Lines, cutting lines, wave Gann theory, entanglement theory, etc., if you are interested in the market, you will definitely find ways to find information to learn these theories, these theories will provide you with the simplest basis for technical analysis, and at the same time, when you After you have a certain foundation, you will definitely master the simplest method, which is to look at the point. Afterwards, with a gradual and in-depth understanding, you will understand the meaning of these support and resistance levels, their levels, and know which ones are important and which ones are not. Usually, the technical school will think that when you have enough ability to spot the point, you will no longer lose money, you will know where to intervene, and at the same time arrange a reasonable stop loss price, sometimes even It will also be very reasonable in the point of appearance. But at this stage, it is generally not profitable, and it is not enough to just look at the point.


The second stage: learn to see the direction.


After the first stage, you start to understand that just knowing the pips is not enough, it does not guarantee profit. You start trying to judge the short-term direction of entry and exit through indicators, and at the same time judge the direction of the big trend through some big cycle theories. At this stage, your account starts to make a profit, and you know you should let the profit run, but you can't achieve a stable income in general. You may be right in a big wave of direction, and quickly gain several times within a few months, but lose it back in the next period of time, because you cannot always grasp the overall direction of the market, you may be in a few waves. Constant trial orders and stop losses in the volatile market, and lack of courage to intervene when the general direction is followed. Generally speaking, this is a rather long process of accumulating experience, and many investors and friends have left at this stage.


In the third stage, learn to judge the trend or shock through the general trend.


You will judge the current state of the market through the large economic environment, supply and demand, purchasing power, and large technical cycles. You will also use some theories such as behavioral economics, herd effect, and market equilibrium stages To understand the sentiment of the market, through these to comprehensively judge the general direction, you will also be familiar with the temper of your investment varieties through accumulated experience, just like how a love saint knows girls well through long-term contact with different girls. Your account starts to have stable profits, and will not be affected by small fluctuations in a short period of time, good or bad news. You also understand that in some cases, it is acceptable to appropriately relax the stop loss position, because there are some Volatility does not affect the big picture. Your biggest gain is to start to know when you should wait and see, learn to take short positions and be patient, and know that you should not make money if you know it is not what you should make.


The fourth stage is to be able to understand the big economic cycle without being swayed by any point in the first three stages.


You become a real investor who thought the previous three stages were just speculators. You don't care about the theory, and you don't care whether the Fed raised interest rates today, because in your opinion, all these are already well established and should be taken for granted. At this time, you are indifferent to the profit or loss of all investors, because in your eyes, their money will enter your pocket sooner or later. This is the highest level of investors!

Copyright reserved to the author

Last updated: 08/29/2023 23:29

714 Upvotes
5 Comments
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2025 Tradinglive Limited. All Rights Reserved.