How to conduct foreign exchange transactions?
What do you need to know about foreign exchange transactions?
Foreign exchange investment, after opening a foreign exchange trading account, as an investor how to conduct foreign exchange trading?
What foreign exchange knowledge should I know before trading foreign exchange?
I believe that, as a novice, before understanding the market, is not open to large orders for foreign exchange investment.
If you are new to forex trading, follow me to learn how to trade forex.
Foreign exchange entry-level traders, first need to set the mentality, do not think of investing in the currency market, can make a lot of money, small make up here to tell you: it is impossible.
There is no hesitation to do foreign exchange trading, the market always rises in hesitation, and this hesitation two words, in fact, is a pit to bury many traders’ dreams.
Hesitation, in fact, is afraid of gains and losses, such as the trading signal dare not open positions, afraid of false breakthrough;
When holding positions, the state of mind is easy to fluctuate with floating wins and losses;
To stop losses from the field, with a fluke mentality;
Retracement of float is unacceptable;
Wait…
Psychologists have named this mentality of always having something to lose or gain in order to achieve a goal the Wallenda mentality.
Wallenda is a famous high-altitude tightrope walker in the United States, he in a major performance, unfortunately, he died.
‘I knew something was going to happen this time,’ his wife said afterward, ‘because he kept saying before he went on the court that this was too important to fail.’
In the past, every successful performance, he always thought of the tightrope walking itself, regardless of what it might bring.
This mentality is also common in trading.
As mentioned at the beginning, when the break is continuous, the reverse is chaos.
Why do traders always have to worry about gains and losses?
Such as gold and foreign exchange such margin trading, under the action of leverage, risks and benefits will be multiplied.
Many traders will always suffer from gains and losses in the process of trading, leading to the smooth progress of the trade, a more important reason is that the position is too heavy, subconscious always have a trace of worry, afraid of their own mistakes caused by huge losses.
The negative emotions that result from this win-lose mentality can feed on themselves and lead to frequent trading.
Here is a simple example: Many traders, especially beginners, who have experienced several losses in a row during the course of trading, start to worry about their next trade losses. This hesitation and confusion will take over, and they may miss the trading signal, only to regret it later.
Then you might rush in and lose money again…
Traders are more likely to suffer losses and gains under the following circumstances: 1. They are overly concerned with the immediate gain and loss of a trade.
The specific performance is that when you lose money, you always think that the next amount will earn it back, and when you make money, you are always afraid of running away with profits, and you think that the bag is safe as soon as possible.
2. Overweight trading position.
Greed and fear are human weaknesses that are hard to get rid of completely, and heavy trading tends to magnify them.
Under the heavy position, coupled with the role of leverage, even if not a large market fluctuations, will put you on pins and needles.
3. Stare at the tray for a long time.
Staring is a must for every trader, but it’s not always better to stare too long. If you do, you may become overly sensitive.
Emotions can also fluctuate with prices, leading you to make irrational judgments.
4. Don’t know.
As mentioned earlier, traders are always worried about missing the market. The reason for this is that traders do not have a clear entry plan in their mind, and they do not know what opportunity is to seize, so they want to seize every opportunity.
These are just some of the reasons, there are other reasons, such as poor psychological quality of traders can also lead to such problems.
Here’s how to overcome it.
How to overcome the problem of gain and loss?
To overcome this problem of gain and loss, the first thing is to correct their mentality, but also to establish the correct value of trading and so on.
Here’s how to do it: First, you need to have a goal and know what opportunity you are waiting for.
Otherwise, you never know what opportunity you’re waiting for. As a result, a full screen of volatility is an opportunity for you, and whenever there is volatility, you’re tempted to jump in.
When you don’t know what opportunity you’re waiting for, the fear of missing out on a big play will always tempt you to enter, and if you don’t, you’ll regret losing the opportunity to make money.
The market is not short of opportunities, but not all the opportunities you can grasp, so you should first know what opportunity you are waiting for?
Is a key point breakthrough or market correction?
Second, give up the idea of getting rich quick as soon as possible.
The thought of sudden wealth can also increase the psychological stress of traders, leading to the risk of loss and gain.
People who think of getting rich quickly, or making money every day, are actually increasing their own pressure invisibly.
Trading should pursue stable profits, not every transaction to make money, but to be able to make long-term stable profits, such as earning more than 50% a year is already able to beat most people.
When the capital is big, a year can earn 30% is actually very good, the problem is to be able to long-term stability.
Third, don’t watch the market all the time, unless you are doing ultra-short-term trading.
Staying in the game for long periods of time can make you feel like your opportunity is passing and you can’t help but want in.
The result can be that you close out your position, see the market go up again, jump in for fear of missing the move, and you don’t even know if it’s a real uptrend or a rebound, resulting in frequent losses.
Another disadvantage of staring too long is that your mood fluctuates with the price. It’s easy to lose your objective judgment, either by closing out your holdings early, or by cutting your losses when you should, because you’re too lucky to do so, etc.
To break this habit, you need to have a hobby other than trading.
After you have a hobby, you can distract yourself and wait for the opportunity you want. Otherwise, it is hard for you to suffer. “Waiting” is a difficult process.
Fourth, establish the correct value of trading.
Many people tend to judge the success of their trades by how much money they make from the start, and this tends to skew you.
The correct trading values should be “make money if you don’t lose money”.
When you set up such values, you will find that your mentality will also change. After losing several opportunities, you will not stop feeling upset, but wait for the next opportunity with optimism.
The fear of gain and loss often stems from the trader’s obsession with money. To get rid of the mentality of gain and loss, traders need to establish a correct view of money.
The above is mostly related to the state of mind, but although the trading state of mind is important, but it is not possible to rely on a good state of mind can succeed, technology and state of mind is indispensable.
So the fifth point is to practice solid basic skills.
You need to establish a relatively mature trading system, study the technical analysis or fundamentals, to understand the factors that affect the price of a certain type of volatility, so that you can improve your accuracy.
Otherwise, chances won‘t mean anything to you if you’re waiting for them to turn out to be mostly wrong.
To take advantage of the right opportunities, you need to have a solid theoretical foundation, and apply what you’ve learned to better understand it.
By deepening your understanding and choosing the trading strategy with the highest success rate (including entry and exit timing, stop losses, etc.), this is the real opportunity for traders to wait for. Over time, you will be able to form your own system and know what opportunities you should take.
Sixth, light trading.
The reason why we suffer from gains and losses in the process of trading, on the surface is a problem of mentality, in fact, the fundamental trigger is the position/capital management is not proper.
So we can nip this mentality in the bud before it starts, and the best way to do that is to trade light positions, as we mentioned in the previous night read.
In fact, many psychological problems in trading are caused by excessive positions, and light positions can solve many psychological problems of traders.
The reason is also very simple, after the position light, one or two trade losses for you completely within the range of bear, naturally will not bring you a lot of psychological pressure.
Don’t dislike the light position to make money slowly, because it is better to earn slowly than to lose money.
1. If you want to do a good job, you must first sharpen your tools.
Choosing a good trading platform can be like a tiger with wings. For example, when Xiaobian just got into foreign exchange trading, the platform used is Jiasheng Group. It not only provides high-quality foreign exchange trading services, but also opens Jiasheng learning resource platform.
2. Trading capital should not be used as living capital. Investment is always risky, and foreign exchange is no exception.
Do not let the failure of foreign exchange investment affect your personal life.
Leveraged trading in foreign exchange can greatly alleviate the problem of insufficient capital.
3. Understand and apply basic economic indicators such as fundamentals, technical analysis and trading strategy proficiently. Do not decide your trading method by intuition.
4. Control your emotions, do not be affected by the sharp rise and fall of the exchange rate. Losing your mind is a terrible demon in investment, and we should always keep a cool head in investment.
5. Record your trading process, no matter the profit or loss in foreign exchange investment, and timely analyze the causes of this situation, so that you can make a more accurate judgment when you encounter similar problems in the future.
Finally, I wish you all a successful profit in foreign exchange trading.
