No matter how familiar a friend is, there is a process from unfamiliarity to familiarity. Investors who want to invest well in the market must also need a process. In addition to learning foreign exchange knowledge at the beginning, in actual operation, the mentality of foreign exchange speculators needs to go through stages. What stages do foreign exchange speculators need to go through to grow their mentality? If you want to know, continue reading!
Looking back at the stages I have been through all the way, I always feel a little gratified about the growth of each investment road. Today, I will share with you the stage of my mentality growth on the road of foreign exchange speculation, hoping to help you.
First: When I first traded, I was worried that I would lose money after placing an order.
This is the initial stage in actual combat. Of course, after many times, you must have corresponding countermeasures, so as to make the investment smoother! The countermeasure I adopted is: set a stop loss, and the loss of each transaction reaches 30% of the total funds. 5% will be withdrawn and resolutely implemented.
Second: With a stop loss, you don’t have to worry about losing money, but what you worry about is that you won’t be able to make a profit, and the stop loss is continuous. If you stop the loss seven or eight times, you will lose a lot of money, and you will only see the stop loss but no profit That’s when I’m most worried.
This is, the countermeasures taken are: to increase the success rate of the operation, to find the critical turning point of the volatility, that is, some entry points with the greatest volatility that may run according to the current trend for a period of time.
Third: The success rate has been improved, so you don’t have to worry about continuous stop losses, and you start to worry about earning less when you earn, especially if you miss the big market. The spread plus the price difference between the two ends of the stop loss, the cost of one stop loss is higher than the theoretical calculation, so if the profit is not enough to make up for the loss when winning, or the profit is small, it is not sure whether it can be profitable for a long time.
Countermeasure: Try to expand the profit when making a profit. If you can catch the big fluctuation, then the small stop loss will not hurt a few hairs.
Fourth: Learn to wait and start to successfully capture some big fluctuations. I am not afraid of making less money when I make money, but at the same time there are more transactions that turn wins into losses caused by waiting. These loss-making transactions not only affect the mood, but also waste time and energy, and have a significant negative effect on the overall trading performance.
Countermeasure: Use the maxim of “never let a profit turn into a loss” and close the position when the profitable position falls back to the cost price.
Fifth: Well, there are fewer trades that lost, but there are also more big market misses due to draws and exits. After a comprehensive comparison, it seems that it is better to use stop loss to gamble those missed big fluctuations.
Countermeasure: Abandon the maxim of “never turn profit into loss” and use stop loss to broaden fluctuations. Further study to improve the placement of stop loss points, and at the same time find out some conditions that can continue to wait for the profit to fall below the cost price.
Sixth: Most of the specific problems have been solved, and the next thing I worry about is to what extent and how long will my method work?
Countermeasure: Implement the system on the historical chart of the past ten years to verify the modification, and use the system to do more than 50 transactions in the future to achieve the point where the system can be executed stably without market interference.
Seventh: The worry is that once a certain nature of the market changes (such as cyclical changes, changes in the government’s financial policies), the property of the currency will change and the system will suddenly fail.
At this time, there is no countermeasure, because the foreign exchange market is an ever-changing place, and there is no one way to win forever.
The above is the introduction of the mentality growth stage of foreign exchange speculators. I believe everyone has understood it. If you want to be familiar with this market, you must pay attention to the financial news of major global events.
