Many people came to this market with a sincere (pious) heart, then failed after a while, and finally lamented that it was too difficult to make money from foreign exchange.
Is it difficult to make money? Let's analyze why we lose money. So why do we lose money?
First, human weakness.
Excessive desire: people who invest in foreign exchange undoubtedly have a strong desire for wealth, but this desire is so strong that it is difficult for them to prepare themselves and actively invest in the market. Can an unprepared soldier win the battle? The result is obvious.
Greed and fear: I won't elaborate on this discussion here. Teacher Xiao Weifeng wrote very well in "Seeing the Failure of Traders from Human Weakness".
Laziness: laziness here means that few people spend time in foreign exchange transactions to make statistical calculations and evaluate transactions afterwards. In fact, these are the most important links in the transaction. I once saw an investor read the trading rules of the company for several hours after the explosion, and finally came to the conclusion that I made all these mistakes that I shouldn't have made.
Wrong thinking and inherent ideas: This market was not formed in China at first, but China's inherent ideas, especially those about stocks and futures, are often exchanged for foreign exchange intact, which is very dangerous. After all, foreign exchange is a completely different kind of trading, with unique and distinctive characteristics, especially highly leveraged margin trading. Therefore, foreign exchange trading should have some unique methods.
Another is that many experiences in our minds are actually wrong. Looking at the China stock market, who are the winners? Stocks can't make money, and foreign exchange may not be so easy to make money. Now the common ways on the market are written by people who make stocks, so the credibility of this experience can be imagined.
Second, trading habits Everyone in this market is a unique individual, so there are many unique ways of thinking and trading habits (Baidu search easyforex-sd). And these methods and habits, especially some habits, have great problems in themselves. For example, we always want to go empty in the rising market; For example, we always want to wait until the market callback to do more; For example, if we are swept several times, we will not set a stop loss; For example, when trading, we always like to stare at the change of money and ignore the more important thing, the objective technical analysis itself.
Third, the risk of the market itself. It is true that the foreign exchange market is the place where funds are most concentrated, and it is very difficult to sit in this market. Then this means that the trend of this market will be more objective and regular. However, the same problem appears before us. Can we master and control this objective market and law? I don't deny that someone (Gann) has successfully predicted the market trend with 92% accuracy, but the research and application of Gann and Gann's theory by these few heterogeneous people have never reached or approached his own height. Therefore, we say that the market is unpredictable. No one can understand the whole market. So, don't try to understand all the markets and earn the profits we can earn.
I hope to seize the biggest market through data and news. In fact, this is very irrational behavior. The information obtained by the organization is incomplete, and the conclusions drawn by the organization's data analysis are often wrong, let alone us. And there are always some emergencies in the market, such as 9 1 1 in America. Therefore, the fundamentals can only be used as a reference, not as an absolute basis for the transaction (I will explain it to you by Yu Yin Investment (Baidu search easyforex-sd)).
Fourth, the trading ideas and methods were driven out of a group because of arguing about a topic, but this topic really made me remember. An analyst's strategy, stop loss and profit target are the same, that is, the profit-loss ratio reaches 1: 1. So let's imagine how high the winning rate can guarantee him to make money. About 50% or more. And whose analysis can guarantee a 50% chance of winning? Generally speaking, this is very difficult. Good investment ideas and methods should be GAI's, such as the method of making money with low winning rate. Personally, I suggest adopting the thinking mode of professional gambler, which means I have to pay a cost and bring ten times the gain. Then even if it can't be realized, there should still be a profit-loss ratio of 1:3. This will ensure that we can make money even with a 30% chance of winning. Therefore, this is the value of trading ideas and methods.
I dare not say that I have successfully traded for several years, but my understanding of the market is no less than that of a trader who has worked hard in this market for several years. This market is far from seniority, and it is definitely a hero based on success or failure. If this hypothesis holds, then I am successful.
Below we recommend an idea, (Baidu search easyforex-sd), which is the way to make money in foreign exchange trading.
First, a good trading concept.
In the last article, we said that good ideas and methods can make money. For example, 1:3 profit-loss ratio. Earn 65,438+000 points and lose 30 points. If we have a 30% chance of winning, taking 65,438+00 transactions as an example, then (65,438+000× 3)-(30× For another example, to make a currency with little market fluctuation, such as the Australian dollar, we can adopt this way: double trading in the same direction. For example, we buy Australian dollars in this position, with a stop loss of 20 points and a target of 60 points; If the stop loss stops, the stop loss position doubles and the stop loss and profit point are the same; Stop loss is the same; In this way, as long as the location permits, you can make money by doing it right once. For another example, we use the golden section line (also called Fibonacci callback line) to make transactions. After the market rose, we held a single transaction at 0.5, with a stop loss of 30 points and a profit of 60 points; We can make money by doing this every time, because we have tested and counted this method for a long time, and the chance of winning is over 70%. Therefore, a good trading concept will definitely bring benefits to traders.
Second, professional technical analysis.
The technical analysis mentioned here is not an analysis method such as common indicators in the market. The index is based on the price, and the price is calculated through analysis, not the previous price. Then the price has lagged behind, and the index is even lagging behind. It is natural to analyze the future development of the market with a very lagging index, and the chances of winning are not high.
So what should a professional analysis look like? Professional analysis should pay attention to the overall situation, which is the understanding and cognition of the whole market and even the whole trading process; When we trade, we should not only see money, but also see crude oil, gold and stock market; At the same time, we should pay attention to government behavior and the psychology and mentality of other market participants and traders. There are also planning, analysis, execution, risk control, trading opportunity, post-evaluation and so on.
In addition to the overall situation, we should also pay attention to important figures and some typical tops and bottoms, the anniversary of prices, important resistance levels and support levels. This is the most important place for our transaction, because these are the positions of the transaction and the target.
Then, pay attention to the symmetry, mirror image and mapping of time and price. This is the hardest part to understand. Simply put, the price will go out of a certain distance in a certain period of time, and then this influence will be symmetrical or mirrored in a new period of time.
Third, abide by the rules and principles.
In fact, many trading methods can make money. Even if we use the oldest and most basic moving averages to analyze the market, we can get very objective profits. But why do many people use them but can't make money? The reason is execution. People are not machines, so people need to be more flexible. However, the flexibility of this transaction does not bring positive things to people, and it is often the end of failure.
Painful failure and successful experience show us the same truth respectively, and it is very important to abide by your own principles. This is why customers who can't analyze at all often trade according to the analyst's trading instructions, and these instructions are often better than the analyst's own trading results. It is much better to strictly implement the standards after they are determined than to constantly analyze the transformation model. This is the hardest thing to do. But we have to do this because we want to make money.
Finally, the trading mentality. Baidu search easyforex-sd), we usually compare trading to a loser's game. If you enter this market not to make money, but to lose money, your purpose is to lose the principal 10 times. Can you do it? This is also very difficult. Because you can't be right and you can't always be wrong. There will always be times when things backfire. So according to the previous stop-loss profit ratio, it is the same to use several times to achieve your goal in the opposite direction. This reminds me of the 28 rule. 80% people in the market want to make money, and only 20% people want to deal with losses. As a result, 20% people make money and 80% people lose money. The reason is that 20% people spend 80% of their time analyzing, and those 80% people spend 20% of their time analyzing.
How to make money by doing foreign exchange? In fact, this problem is not difficult, so there are several aspects: look at the trend, look at the moving average, look at the data, choose the opening point, choose the closing point, grasp the mentality, and talk about the trend first. For us ordinary investors, the trends we need to master are medium-term trends and short-term trends. For the medium-term trend, you can look at the weekly chart to understand the general direction of a certain currency. The short-term trend can be seen in the sky chart, and its purpose is to provide a basis for our order. Only by understanding a trend of a certain currency can we not run counter to the market and give all our hard-earned money to the market. In other words, watching the trend is the premise for us to make money. People who don't understand trends will never make money.
The moving average is the best technical indicator. Some people spend a lot of energy and financial resources to learn MACD, KDJ, RSI and other indicators, and finally apply them to the market, but still lose more and earn less. Later, a long-term foreign exchange master told him, "What you have learned is of little use, and the best technical indicator is the moving average." After that, he began to concentrate on studying the moving average and finally became an excellent trader. This story tells us that the moving average is a very good indicator, the simplest and most practical, and its accuracy is far higher than other technical indicators. The moving average can not only see the trend, but also provide a basis for us to place an order. The use of multiple EMAs can facilitate us to find a buying point or selling point, so that we can win steadily.
Generally speaking, the impact of important data will last about 10 to 15 minutes after publication, while the gap of individual data will appear in a few seconds to a few minutes after publication, which is the active period for high-risk investors. Then when the news spread further, other more experienced or conservative investors entered the market. In this way, investors can still benefit from the large fluctuations brought by the news, but the risk is of course relatively low, and the chances of hitting the daily limit and stop loss are equal, so it is easier for investors to control the timing of closing their positions and making profits. From this point of view, it is much more likely to make money by placing an order with important data, but it should be noted here that when placing an order, you must place an order in advance, and you don't need to set a take profit point, but you must set a stop loss point, because you don't know the direction, you only expect the direction to be up or down. Without a stop loss, the direction is wrong, and that loss will make you vomit blood. Remember.
It is very important to build a warehouse. When judging the correct trend, you must choose a good warehouse. If you choose a bad warehouse, you will also have great risks and even lose money. There are many rebounds in the general trend. If the opening point is not well chosen, it is easy to be eaten by the rebound. Then some people may say "just don't stop loss". This is a wrong idea. People who don't stop will never make big money, because if the stop loss is set, we can immediately change direction and make another band to earn back the lost money. If you don't stop loss, you will lose. Finally, the choice of warehouse is very important, and it is also the object of our key research.
The choice of clearing point is relatively simple. Yuyin Investment will explain it to you (Baidu search easyforex-sd). Generally, there are several methods: the first is to keep an eye on the market, and then close the position on yourself, earn as much as you want, or earn as much as you feel. This way is a state of mind. Second, set a profit-taking point when opening a position. The stop-loss point is generally opposite to the profit-taking point, which is generally 3: 1. This method is very simple. If you do 10 times, lose 7 times and make money 3 times, then you will generally make money. Say it simply. The third way is to find the liquidation point according to some technical indicators to earn the maximum profit. This way is more difficult. Generally, the liquidation point is found according to Ibonacci's adjustment line. Interested friends can go to yuyin for investment consultation.
The last and most important point is mentality. Although it is very important, I won't say it here, because what I want to say may not be finished in one day. A good attitude is the premise of making money. How to face the loss, how to face the profit and how to deal with the fluctuating market are all problems of mentality. I suggest you go online to find some information about the mentality of speculating in foreign exchange, which will be of great help to you.
The above points can not be done much, but if you can do about four, you will generally not lose money in the foreign exchange market, and the profit should not be too small. Finally, I wish you all the best and go to the sea for gold together.
The above is the secret of how to make a fortune in foreign exchange. Do you understand now? If you want to get rich by speculating in foreign exchange, you must master these secrets of speculating in foreign exchange. Are you ready? Work hard from now on, and you will surely make a fortune by speculating in foreign exchange!