1 when trading, it is very important to know the market, because it can help you determine your own trading criteria, and at the same time help you minimize your losses and overcome the psychological obstacles of the first transaction. Some novice traders do not have such troubles, which just reflects that such traders do not pay attention to the understanding of the market. What is understanding the market? First of all, we must know who is the participant in the foreign exchange market. Generally speaking, the bosses of foreign exchange trading are all major central banks, commercial banks, companies engaged in foreign exchange trading, investment funds, brokers and some individuals with huge amounts of funds.
2. Never trade during the day. Personally, I think the biggest achilles heel of foreign exchange traders is day trading! Because of the simple operation of foreign exchange, most newcomers like to operate short-term trading because they are unwilling to wait for a long time. Short-term trading is difficult to master, but this is not the biggest problem. The biggest problem is that many new friends will start making orders frequently because of the short operation time, but in fact, the signal is not as much as we thought. The result of long-term frequent orders is undoubtedly a loss! It is suggested that the ideal order should be no more than five transactions a day. Only by really looking at the signal can we make orders, improve the hit rate and increase profits!
3. Only traders who fully understand the concept of money market can manage risky and safe transactions. Managing risk has always been a headache for beginners, but as long as you can master this skill, you can really grow into a qualified foreign exchange trader. Novice traders should pay more attention to their mentality, do not arbitrarily add positions, and strictly stop losses.
4. The next step is to analyze yourself as a member of the financial market, understand your emotional intelligence, self-confidence and willpower, and make appropriate trading plans. A simple understanding is to analyze your risk tolerance and confirm whether you are a trader who is willing to take high risks and get high returns, or an investor who is willing to make safe transactions and get relatively low returns.
Another fatal wound of foreign exchange traders is unplanned trading. They like to trade at will when they see the signal they seem to hear. Even if they make a profit, they don't know why, let alone lose money. The trading plan is the most important. For those traders who have not formed their own trading system, if they want to control their own trading, they must write a trading plan before trading and strictly follow the plan when trading, so as not to be dragged down by the market.
6. There are various fraudulent means and technologies in the financial industry, and investors should carefully distinguish them. It is very important to choose a standard broker. Before becoming its user, do a simple investigation on the background of brokers, and make clear the legitimacy of investment products before investing.
After you start trading, as a foreign exchange trader, you should pay attention to your mistakes in trading. This technique can help you predict the risks and get better returns in the future.
8. Discipline is a very important part of foreign exchange trading. Cultivating good trading discipline can help us avoid many unpredictable risks and face our trading more rationally. Trading without discipline is like guerrilla warfare, and it may be wiped out at any time. Many foreign exchange traders have caused a lot of unnecessary losses because of lack of discipline, and they regret it afterwards. This is not worth the loss. If you want to make a long-term profit in foreign exchange trading, you must do a good job in trading discipline.
9. Avoid confusion in the transaction. Because confusion may be the biggest obstacle to profit.
10 at the same time, we also suggest that all traders diversify their investments in several transactions instead of investing a lot of money. The reason is naturally simple, "Don't put all your eggs in one basket".
Trading can't be profitable every time, nor can foreign exchange trading. Therefore, you should not expect to gain something in all transactions, especially for novice traders. Keeping a good attitude is the cornerstone of success.