Precautions for beginners to speculate in foreign exchange:
1, choose a regular platform to ensure the safety of funds. This has been said in the last chapter, but because it is the most important, I emphasize again that those who have not found a good platform can trust me privately. In addition, I will introduce two platforms for your reference in the next chapter.
2. novices should watch more and move less when speculating foreign exchange. As we said, the foreign exchange market fluctuates 22 hours a day, divided into Asian market, European market and American market. Generally speaking, the American market fluctuates the most, followed by the European market, and the Asian market fluctuates the least. The U.S. market is separated at 20: 30 in summer time, so novices can't judge the market trend, watch more and move less, and cultivate a sense of disk.
Novices should not speculate foreign exchange positions too heavily. Foreign exchange is a margin transaction, and the leverage is 100 times, which is very different from the full transaction of stocks. For example, the price of gold is now around 1300 ounces, and primary gold 100 ounces. If you buy it in full, you need130,000 USD. The leverage is 100 times, and the fluctuation of a point is 100 dollars. We generally recommend that positions should not exceed half of the total funds, and the rest should be reserved for risk control. This is something that novices must remember when operating foreign exchange, and avoid heavy positions.
4. Strictly take profit and stop loss. As we said earlier, foreign exchange fluctuates all the time. It is impossible for us to stare at the market and do nothing 22 hours a day, so take profit is to achieve the ideal point of the market and get the income you want. Why must we stop loss? Although there is no banker in the foreign exchange market, it is greatly influenced by the news, especially by the United States. And those consortia with large funds can know the news earlier and faster, so as to buy and sell large funds in the market, commonly known as smashing the market, which will instantly cause huge fluctuations in the market, but we can't always make the right direction. Just in case, we can automatically close the position when the market goes in the opposite direction and reaches the stop loss point, so as not to cause more losses.
5, the mentality should be adjusted. Why is it a matter of mentality to emphasize the need to invest with spare money from the beginning? Making a firm offer is often a test of mentality. When you make a mock order, you can cover everything, but when you make a real offer, you will always open it and have a look. Once you make money, you want to make it even. Even if you make a list with a center line layout of 100 points, the market is moving in the direction you expected, but the market can't keep rising, and it won't. It has been going up and down, up 10 points and down 3 points. Once you see the decline, the original good mid-line list will be leveled. Look at the market a month later, it has risen to a very high position, and the profit of 100 has been missed. This is what many friends who speculate in foreign exchange often say. Therefore, the mentality must be adjusted.
To sum up, speculation in foreign exchange is an investment. Since it is an investment, don't always think about getting rich overnight. What we have to do is to let the capital continue to increase in value, regardless of the gains and losses of a city and a place, regardless of the loss of a single order. What we have to do is to maintain the overall profit. There is no master who doesn't lose his order.
The next chapter atlas recommends two foreign exchange platforms to explain the account opening process in detail.