How do forex novices make money?
Analysts who trade in most foreign exchange companies believe that novices are basically blind in making orders. Profitability is luck, and it is normal not to be profitable. So foreign exchange novices really don't have their own profit model to find? The answer, of course, is that foreign exchange transactions seem complicated, but in fact they are very regular. Mastering these rules, even beginners can taste the happiness of making money steadily in a short time. Here, we provide three magic weapons for novices to help them make money. First, along the road, the most direct embodiment of the law of market movement is the trend. The only way to treat the trend correctly is to follow suit. This is the first magic weapon to make money or even survive for a long time in the speculative market. When beginners learn to trade, it is of great value to establish the direction of price operation for the overall success or failure of trading. Determine the direction through objective analysis, then jump into the trend, and stay in it all the time, go with the flow. As long as the trend continues to be favorable to you, you must make a profit by holding positions. Learn to trade in the direction of the trend, and in this process of ups and downs with the trend, through risk management, obtain excellent operational results. This is the essence of following the trend. For beginners, the recommended analysis tool is the moving average. As a concise and clear trend indicator, the moving average has a good effect in following the trend and won the favor of practical experts. The specific application is discussed with analysts online. Second, take the big market. Novices who have just set foot in trading should pay attention to cultivating systematic trading thinking at the beginning, regardless of temporary gains and losses, and strive for long-term and stable overall income. To do this, we must learn to choose among many market opportunities, seize the big opportunities and give up the small ones. Therefore, we must firmly grasp the two core factors of evaluating opportunities, namely, risk-return ratio and success rate, which is the second magic weapon for beginners to make money. The so-called risk-return ratio is the ratio between the potential risk loss and the expected return of a transaction, that is, the risk-return ratio. For example, we intend to execute a transaction. After analysis, if our estimated potential loss value is 100 points and the profit target is 300 points, then the risk-return ratio of this transaction is 1: 3. Considering that the smaller the risk-return ratio, the higher the success rate, which is what we should strive for. Third, limit stop loss, investors who will not stop loss will definitely lose money, and investors who will only stop loss will definitely lose money. Only investors who can stop loss and make money can taste the taste of making money for a long time. Limit losses, lock in, limit losses, keep the principal, and hold profitable positions for as long as possible to increase profits, which is the third magic weapon to make money by speculation. While limiting losses, we should learn to make more money to make up for the losses caused by mistakes. Only when you stay for a long time can you make big money. Only when you make big money can you make up for the losses caused by a lot of mistakes and have a balance. This is the final trading profit. For an investor who has just stepped into the foreign exchange market, it is not difficult to make money in the foreign exchange market as long as you firmly grasp the three magic weapons provided in this article and keep practicing, even if your knowledge and experience are not as rich as those of some veterans.