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Chapter 22 Foreign exchange trading, quickly earn the difference and make huge profits (1)
The basic skills that novices need to practice when entering the foreign exchange market
Novices who are new to the foreign exchange market lack practical operating experience, and it is inevitable that they will feel that they have no way to start.Here is a summary of 9 foreign exchange trading and investment skills advocated by many experts in the foreign exchange market for readers' reference, hoping that investors can benefit from them.

[-]. Invest with "spare money"

The money used for investment must be "spare money", that is, funds that have no urgent and accurate use for a while.Because, if the investor invests with the necessary expenses of family life, in case of loss, it will directly affect the family's livelihood.Or, when making money with a sum of money that should not be used for investment, you are already at a disadvantage psychologically, so it is difficult to maintain an objective and calm attitude when making decisions, and the chances of failure in the investment market will increase.

[-]. Small households should not invest blindly

Successful investors do not blindly follow the advice of others.When everyone is in the same investment position, especially those small investors are following up one after another, successful investors will feel the danger and change course.Blind obedience is a fatal psychological weakness of "small" investors.As soon as an economic data is released, a piece of news suddenly flashes out, and as soon as the 5-minute price chart "breaks through", they scramble to jump into the market.I am not afraid that everyone will lose money together, but I am afraid that everyone will make money.In a sense, sometimes the market trend is misunderstood, or the situation suddenly reverses after placing an order, which leads to the order being caught. This is a normal phenomenon, and even the masters cannot be spared.However, when it comes to how to make decisions and deal with them afterwards, the most stupid behaviors all stem from the psychology of small households.

[-]. Don’t change your mind when you have set your mind

After full consideration and analysis, the price and plan for entering the market on the day are pre-determined, and the decision should not be easily changed due to the impact of the current price fluctuation. The decision is made temporarily based on the change of the price of the day and market news, unless it is an investment magic hand Generally speaking, a flash is very dangerous.

[-]. In times of adversity, leave the city to rest
Investors are in a state of extreme mental tension for a long time because they are involved in the gains and losses of personal interests.If you make a profit, you still have a little sense of satisfaction as a comfort; but if you are in adversity, with continuous losses, or even unnecessary mistakes, you must pay attention at this time, and don't lose your sobriety and calmness with your mind swollen. At this time, the best The best choice is to leave everything behind and leave the city to rest.When the rest is over, the temporary profit and loss are in the past, the swollen mind has calmed down, and the burden of thinking has been unloaded.It is believed that the efficiency of investment will be improved.There is a saying, "A general who can't rest is not a good general." If you don't know how to recuperate, it is impossible to defeat the enemy and pull out the city.

[-]. Patience is also an investment

There is a saying in the investment market: "Patience is an investment." But I believe that few investors can do this, or really understand its meaning.For those engaged in investment work, they must cultivate their good tolerance and endurance.Patience is often a "multiplier" for investment success, and it is related to whether the final result is positive or negative.Many investors do not have low analytical ability or lack of investment experience, but just lack of patience, which leads to premature buying or selling and unnecessary losses.Therefore, every investor involved in the foreign exchange market should realize from his own consciousness that patience is also an investment.

Sixth, the stop loss position, cut the flesh with a knife
Set a stop loss position, that is, at this point, you have reached the maximum loss position you can bear. Once the market reverses and the exchange rate falls to the stop loss point, you must have the courage to cut your flesh.This is a very important investment skill.Due to the high risk of the foreign exchange market, in order to avoid losses in case of investment mistakes, we should set a stop loss order every time we enter the market, that is, when the exchange rate falls to a predetermined price, it may still fall. , the transaction closes immediately.In this way, the losses incurred are only limited and acceptable losses, and the losses will not be further expanded, or even lost.Because even if the meat is cut for a while, the investment capital is still there, and if the green hills are left, there is no fear of running out of firewood.

[-]. Don’t be desperate

Engaged in foreign exchange trading, you must do what you can, and you must not put all your life savings or all your family assets into it like a big bet.Because in this case, once the forecast of the market itself is not accurate, there is a possibility of large losses or even being unable to extricate oneself.At this time, the wiser approach is to implement the method of "pyramid overweight", to make a part of the investment first, and then increase part of the investment if the market is clear and beneficial to oneself.In addition, we must pay more attention to prevent the germination of the all-or-nothing mentality when the market is in adversity.

[-]. Be careful of the rebound after the sharp drop and the adjustment after the sharp rise
In the foreign exchange market, the sharp rise or fall of the price will not rise or fall like a straight line. If it rises too sharply, it will always be adjusted, and if it falls too sharply, it will rebound. The adjustment or rebound is relatively large. It is complicated and not easy to grasp, so you should be extra careful after the exchange rate rises sharply by [-]-[-] points or [-]-[-] points. It is better to stay on the sidelines than to follow up rashly.

[-]. Learn risk control

The foreign exchange market is a very risky market. Its risk mainly lies in the fact that there are too many variables that determine the price of foreign exchange.Although there are various theories and theories about foreign exchange fluctuations, the fluctuations in the foreign exchange market often surprise investors.For foreign exchange market investors and operators, it is especially necessary to learn a little about risk probability.In other words, in foreign exchange investment, it is necessary to fully understand the risks and benefits, the probability of winning and losing money, and several major issues to prevent.If you do not have an accurate understanding of risk control, you will lose money if you trade foreign exchange at will.

When entering the foreign exchange market for the first time, you need to sharpen your guns, master some relevant investment skills, be confident, preset stop loss and price limit points, and control losses or lock in profits in time by setting stop loss and price limit points.

Practical skills in foreign exchange trading

The operation of foreign exchange trading is highly technical, and it is necessary to pay attention to skills. Here are six foreign exchange trading investment skills summarized and advocated by many experts in the foreign exchange market, for readers' reference, and hope that investors can benefit from them.

[-]. Pay attention to the opportunities in the game
The market situation refers to the situation where the market price fluctuation range is narrow, the buying and selling forces are evenly matched, and it is temporarily in a state of confrontation and see-saw.Regardless of the market situation in the rising market or the market situation in the falling market, once the market situation is over and the resistance level or support level is broken, the market price will break through and make a breakthrough.

For experienced investors, this is a good time to enter the market and build a position.If the market is a long-term barrier, the positions established when breaking through the market will inevitably be profitable.

[-]. Buy up, not down
The most important thing in foreign exchange speculation is to buy up and not buy down under the premise of grasping the trend of the foreign exchange market, step on the rising or falling trend of the foreign exchange market, and follow the trend.Just like the principle of buying and selling stocks, it is better to buy up than down in foreign exchange.Because there is only one thing wrong in the process of price rise, that is, when the price rises to the peak.Except for this point, it is right to buy at any other point.Buying when the exchange rate falls, only one thing is right, that is, the exchange rate has fallen to the lowest point.Therefore, the chance of making a profit by buying when the price rises is much greater than when the price falls.

[-]. "Pyramid" overweight

"Pyramid" overweight means: After buying a certain currency for the first time, the exchange rate of the currency rises. Seeing that the investment is correct, if you want to increase your investment, you should follow the principle of "the amount of each overweight is less than the last time". In this way, the number of incremental purchases will be less and less, just like the "pyramid".Because the higher the price, the greater the possibility of approaching the peak of the rise, and the greater the danger.

[-]. Don’t overweight when losing money

After buying or selling a foreign exchange, when the market suddenly advances in the opposite direction, some people will want to increase their positions, which is very dangerous.For example, when a certain foreign exchange rises continuously for a period of time, traders chase up and buy the currency.Suddenly the market turned around and plummeted downwards. Seeing that they were losing money, traders wanted to buy an additional order at a low price in an attempt to lower the exchange rate of the first order. When the exchange rate rebounded, the two orders were closed together to avoid losses.Be very careful with this approach.If the exchange rate has been rising for a period of time, you may be buying a "top". If you buy more and more as the exchange rate falls, you will continue to increase your price, but the exchange rate will never turn back, then the result will undoubtedly be a vicious loss.

[-]. Continuous profit

Inexperienced investors, after buying or selling a certain product at the beginning of the market, immediately think of closing the market to collect money as soon as they see a profit.Profit closing seems easy to do, but capturing the timing of profit is a science.Experienced investors will determine the closing time based on their own judgment on the exchange rate trend.If he thinks that the trend will further develop in a direction favorable to him, he will be patient, knowing that it is beneficial but not making any profit, and allow the exchange rate to develop in a direction more favorable to him as much as possible, so as to continue the profit.Closing the market as soon as you see a small profit does not mean closing the market as soon as you see a good one. In the end, you may end up with less profit and more loss.

[-]. Don't blindly pursue integer points
In foreign exchange trading, don't blindly pursue integers when making profits.In actual operation, some people set a profit target for themselves after establishing a position. If they want to earn enough $2 before leaving, they are always waiting for this moment to come.

After making a profit, sometimes the price is close to the target. At this time, the opportunity to make a profit is very good, but it is still a few points away. It could have been closed to collect money, but due to the original target, I missed the best while waiting. The price is a missed opportunity.Remember, it's not worth losing a few points in order to fight.

In any investment market, the basic investment strategy is the same.But for the complex and ever-changing foreign exchange market, it is necessary to master general investment strategies. meaning, and has a strong guiding significance in actual combat.

Twelve Ways to Get Legal Forex
On February 21, 2, the China Securities Regulatory Commission decided to allow domestic residents to open B-share accounts with legally held foreign exchange and trade B-share stocks. There is a huge difference in the prices of A and B shares, and B shares are favored by the majority of investors because of their lower price-earnings ratio and price.Domestic investors who want to join the ranks of B-share investment must first legally hold foreign exchange.

Domestic residents legally obtain foreign exchange through the following channels:

(1) Patents and copyrights: Foreign exchange obtained by residents from licensing or transferring individual patents and copyrights to non-residents;

(End of this chapter)