Can you make money by speculating in foreign exchange and buying down?
Many people who speculate in foreign exchange have such confusion. Today, the author tells you whether you can make a fortune by speculating in foreign exchange with practical cases. Please follow the author's thinking to understand. Whether you are long or short, you can make money because you have a counterparty, so you can make a deal; For example, if you are bearish on the exchange rate of the forward dollar against the domestic currency, there will always be many people in this market, and you can buy and sell. But the premise is that this market is large enough and withered, so there will be a deal between the two sides, otherwise it will be a unilateral market and it will not work! When it comes to zero-sum games, some investors will think it is difficult to make a profit, but the foreign exchange market is special. Market participants include investors who are not for profit, such as the central bank to stabilize the exchange rate and traders who need to use foreign exchange for domestic trade. So even if this market is zero-sum, there is still room for investment. Foreign exchange is a two-way transaction. The exchange rate is the ratio of two currencies. If one goes up, the other goes down. Buying down is equivalent to buying an absolute other currency. In the same boat, you can see this terrible thing everywhere. Because we China investors have been misled by unilateral bulls in the foreign exchange market for many years under the specific historical background, after entering the foreign exchange market, due to the influence of directional thinking mode, we are only used to one-way bulls. But from now on, I will give you a brand-new idea. When you are in the foreign exchange market, you should pay attention to shorting, not just going long! Because the foreign exchange market is no better than stocks, if you analyze that one currency is strongly bearish on another, you can make a profit by "short selling" and give you an accurate return, but stocks are not. If you are bearish, the fact is really a big drop, but what can you do? Through the blogger's many years of experience in stock trading and foreign exchange speculation, combined with the similarities and differences between the stock market and foreign exchange, I devoted myself to research and got the same feeling, that is, shorting is easier to achieve profit than doing more! Based on the analysis of short-selling skills for many years, this paper has developed a set of unique methods and skills about when to short. Let's give an example first! As we all know, foreign exchange, like stocks, is also a trend speculative product. In other words, it has the same inertia as the stock market, that is, if it fell yesterday, the probability of falling today is greater than 50%. On this premise, if we can make our "short" operation more accurate, we should also add some more reliable technical indicators and graphics. This country says gambling is a crime. Why are there so many people doing it? ! Just don't do business The state does not allow false quotations, and can interfere with foreign institutions to make foreign exchange guarantees. This is an important difference between him and stocks. With the fluctuation of exchange rate, anyone can make more short positions, which means that everyone will have a profit or surplus, and the money you earn is the money that others lose. Buying and selling foreign exchange protection funds can naturally make money. If you can't make money, will all the money lost by those who lose money fly? It's just that the trading of foreign exchange protection funds has higher requirements for buyers and sellers, and the growth cycle is longer. Many people have entered the foreign exchange market before they understand it, and many people have been eliminated by the market before they understand it. Therefore, it is difficult for them to make money without deep protection of the foreign exchange market. First of all, you have to understand what safe foreign exchange is. Safe foreign exchange can be bought long or sold short, which is very dangerous! Secondly, you should have a deep understanding of the K-line chart, make more analysis and learn more about foreign exchange! Thoroughly analyze the map! Finally, pay attention to my state of mind! The foreign exchange guarantee fund must avoid the word "greed"! I hope you can make money! Because foreign exchange is different from stocks and futures, it buys and sells two currencies, not currencies and commodities.