1In August, 1994, the CSRC and other four ministries jointly issued a document to completely ban forex futures trading (deposit). Since then, the management department has always held a negative attitude and severely cracked down on domestic foreign exchange margin trading.
At the end of 1993, the People's Bank of China began to allow domestic banks to conduct firm foreign exchange trading for individuals. By 1999, with the standardization of the stock market, the profit margin of buying and selling stocks has been greatly reduced, and some investors have begun to enter the foreign exchange market. Domestic foreign exchange firm trading has gradually become a new investment method and entered a stage of rapid development. According to CCTV, foreign exchange trading has become the largest investment market except stocks.
Compared with the domestic stock market, the foreign exchange market is much more standardized and mature, and the daily trading volume of the foreign exchange market is about 1000 times that of the domestic stock market. Therefore, although the trading rules are not completely in line with international practice, the personal firm foreign exchange trading business provided by domestic banks has attracted more and more participants.
Generally speaking, the vast majority of foreign exchange investors at home and abroad participate in the firm trading of domestic banks, and the margin trading will take some time for domestic investors because China is not yet open and the country's foreign exchange control policy. Avoid investing extra money.
If you invest the living expenses at home, if you lose money, it will directly affect your life. At the same time, your psychology will be at a disadvantage, and it is difficult to keep an objective and calm attitude when making decisions.
Know yourself and yourself.
To understand your own personality, people who are impulsive, emotional, timid and dare to lose money are not suitable for this market. Most successful investors can control their emotions and have strict discipline. The transaction volume should be measured according to the account amount, not too much. Generally speaking, the risk of each transaction should not exceed 10% of the account funds. According to this law, risks can be effectively controlled. It is unwise to trade too much at a time, and it is easy to produce uncontrollable losses.
To be a successful investor, one of the principles is to keep more than three times the capital at any time to cope with price fluctuations. If you don't have enough funds, you should reduce the sales contracts you hold, otherwise, you may be forced to "lighten up" to release funds because of insufficient funds, even if it turns out to be accurate.
Foreign exchange trading can't just rely on luck and intuition.
If you don't have a fixed trading method, then your profit is likely to be very random, that is, by luck. This kind of profit cannot last long. Or one day, if you are unlucky, you will have the same loss. Intuition is very important in trading, but trading by intuition alone is risky. It is most important to understand the reasons for profit and make your own profit operation method.
Make good use of stop loss orders to reduce risks.
When trading, you should establish a tolerable loss range and make good use of stop-loss trading, so as to avoid huge losses. The loss range depends on the funds in the account. Don't be soft when you encounter a stop loss, because you have removed the risk that the market will continue to deteriorate and the losses will expand indefinitely.
Learn to carry out the trading strategy thoroughly, and don't make excuses to overturn the original decision.
In order to avoid this fatal mistake, we must remember a simple rule: don't let the risk exceed the initially set tolerable range. Once the loss reaches the upper limit set at the beginning, don't hesitate to close the position immediately!
The transaction funds should be sufficient.
The less the account amount, the greater the transaction risk. Therefore, it is necessary to avoid letting the trading account fluctuate only at 50 points. Such an account amount is not allowed to make mistakes, but even experienced foreign exchange traders sometimes make mistakes in judgment.
Mistakes are inevitable, so we should learn from them and never make them again.
Mistakes and losses are inevitable. Don't blame yourself. It is important to learn from it and avoid making the same mistake again. The sooner you learn to accept losses and learn from them, the sooner the day of profit will come. In addition, learn to control your emotions, don't be proud of making money, and don't be depressed by losses. In trading, the less personal emotions, the more you can see the market clearly and make the right decision. Facing gains and losses with a calm mind, it is necessary to understand that traders do not learn from profits, but grow from losses. When you understand the reason of each loss, it means that you have taken another step towards profitability, because you have found the right direction.
Operate with the trend, not against the trend.
Remember the old general rule of the market: the loss position should be terminated as soon as possible, and the profit position should be maintained as long as possible. Another important rule is not to let the loss happen in the original profit position. In the face of the sudden reversal of the market, don't close the position without profit, and don't let the originally profitable position turn into a loss.
Never have a trading mentality that is eager to turn over.
In the face of losses, remember not to rush to open new positions in the opposite direction in order to turn over, which will often only make the situation worse. Only when you think that the original forecast and decision are completely wrong can you close the loss position as soon as possible and open a new position in the opposite direction. Don't play guessing games with market changes. It is better to miss the trading opportunity than to lose money.
Every time it is an independent transaction.
Never connect two or more transactions! Remember, each transaction is an independent transaction.
"Past price" is also a psychological obstacle that is quite difficult to overcome. Many investors are influenced by past prices, which leads to wrong investment judgments. Generally speaking, after seeing the high price, when the market falls back, you will feel quite unaccustomed to the new low price; At that time, even if all kinds of analysis showed that the market outlook would fall again and the investment climate in the market was very bad, investors would not only not sell their products before these new low prices, but also felt very "low" and had the impulse to buy, and they were firmly stuck after buying them. Therefore, investors should "forget the past prices".
For example, after selling yen at 12 1.00, stop loss at 120.50. Three days later, after analysis, it is believed that the dollar will rise, and the current price can buy dollars and sell yen, but the current price is 120.80. At this time, don't think that the last transaction stopped at 120.50, but it's not cost-effective to sell at 120.80 now. You must wait until it falls below the last stop 120.50 before entering the market. Such contact is not only useless, but also easy to miss the opportunity! As long as the entry, stop loss and profit price of this transaction are determined through analysis, you can enter the market decisively.