Investors in each stock market have their own misunderstanding characteristics. Foreign exchange knowledge is also very familiar to foreign exchange speculators, because they know that only by knowing the most basic knowledge can they use their knowledge points to increase their bargaining chips for profit. What are the misunderstandings that foreign exchange speculators tend to fall into without knowing it? Today, the author brings you five major psychological misunderstandings based on my own summary.
Everyone’s psychological thoughts are different, which is just as we often say that everyone has their own advantages and disadvantages. There is no perfect person in this world. Stock investors are also working hard on how to stop losses, only in this way can they find happiness and interest in investment. The five major psychological misunderstandings of foreign exchange speculators are introduced in detail as follows.
First, indecisive
Investors with this kind of investment psychology have made plans and considered investment strategies before buying or selling a certain currency, but when they are influenced by other people’s “herd psychology” and step into a certain currency market, It is often impossible to form a good securities portfolio, and if there is any trouble, you cannot implement your own investment plan.
Second, endless desire
It is natural for investors to want to obtain investment income, but they should not be too greedy. Sometimes, the failure of investors is caused by excessive greed. Whatever is beneficial, don’t give up an inch. Such greedy speculators are not uncommon in a certain currency market. They don’t want to control, nor can they control their greed. Whenever the price of a certain currency rises, he always refuses to throw out the currency he holds decisively, and always encourages himself in his heart: must persist until the last moment of victory, and do not give up more profit opportunities ! This often gives up an opportunity to sell a certain currency.
Third, the foreign exchange market as a casino
Foreign exchange market investors with a gambling mentality always hope to make a fortune one day. They can’t wait to seize one or a few of a certain currency so that they can make a lot of money. Once they make a profit in the foreign exchange market investment, they will probably be dazzled by the victory and raise their bets frequently like a gambler. Go to the foreign exchange market until you lose everything. When the foreign exchange market fails, they often do not hesitate to fight with their backs and invest all their funds in a certain currency. Most of these people end up bankrupt.
Fourth, cheap psychology
Entering the market at a high price will of course bring unfavorable consequences to investors, but if you want to buy stocks with low prices wholeheartedly, sometimes you may not necessarily have good returns. “Cheap things are often not good products”, of course there are exceptions. In a certain currency market, there are many investors who hold the mentality of “dislike expensive and greedy for flat”, and only think of buying some currency that is cheap, and do not consider buying those whose prices will rise sharply. A certain currency thinks that this kind of investment is risky, but they don’t know that the relationship between risk and return is directly proportional.
Fifth, indecision
Some investors have made investment plans and strategies in advance, but when they step into a certain currency market, they are influenced by the external environment. For example, he decided in advance to buy a certain currency when the price continued to fall, but when he saw the market, everyone was selling, and he withdrew his hand to buy a certain currency. There are also people who have no plan to buy that kind of currency at all, but when everyone rushes to buy it, he can’t stand the temptation.
The above is the introduction of the five major psychological misunderstandings of foreign exchange speculators. The foreign exchange market is as risky as other trading markets. Only through multiple transactions can foreign exchange speculators deeply understand the mysteries of the foreign exchange market. Only through repeated experience summarization can they form their own trading style. In order to obtain the desired wealth value in the foreign exchange market!
