Basic strategies for foreign exchange investment

Whether it's investing in the domestic market or the foreign market, whether it's investing in general commodities or financial commodities, the basic investment strategy is consistent in more complex situationsforeign exchangeThis is particularly true in the market. Although there are differences in the investment strategies of each individual, some are basic, as summarized in the following strategies, which have considerable reference value for various investors.


(1)Investing with idle funds
If investors invest in the necessary expenses of family life, and in case of losses, it will directly affect the livelihood of the family, then
The chances of failure in the investment market will increase. Because when using money that should not be invested to make money, one is already psychologically disadvantaged, making it difficult to maintain an objective and calm attitude when making decisions.


(2)know one's self and know the enemy
It is necessary to understand one's own personality. Those who are prone to impulsiveness or emotional tendencies are not suitable for this market. Successful investors are mostly able to control their emotions and have strict discipline, which can effectively restrain themselves.


(3)Do not engage in excessive trading
One of the principles to become a successful investor is to always maintain3More than double the amount of funds to cope with price fluctuations. If you have insufficient funds, you should reduce the number of buying and selling contracts you hold. Otherwise, you may be forced to "close positions" to free up funds due to insufficient funds, even if it later proves to be accurate, it will be of no use.


(4)Facing the market and abandoning illusions
Don't be sentimental, overly longing for the future and reminiscing about the past. An AmericanfuturesThe trader said: A person full of hope is a beautiful and happy person, but he is not suitable for being an investor. A successful investor can separate his emotions and trading.


(5)Don't change your mind hastily
Pre set the price and plan for entering the market on the same day, and do not easily change your decision due to the impact of current price fluctuations. It is very dangerous to make a temporary decision based on changes in the price of the day and market news.


(6)Make appropriate suspension of trading
Day after day trading will gradually slow down your judgment. A successful investor said: Whenever I feel my mental state and judgment efficiency is low90%I started not making any money, and when my state was too low90%At that moment, I began to lose money, so I will let go of everything and go on vacation for a few weeks. A short break can help you rediscover the market, rediscover yourself, and better see the direction of future investments. Investor motto: When you're too close to the forest, you can't even see the trees in front of you.


(7)Do not blindly
Successful investors will not blindly follow the will of others. When everyone thinks they should buy, they will wait for an opportunity to sell. When everyone is in the same investment position, especially small investors who are also following suit, successful investors will feel dangerous and change their course. This is similar to the reverse theory, when most people say they want to buy, you should wait for an opportunity to sell.


(8)Refuse other people's opinions
When you have grasped the direction of the market and made basic decisions, do not easily change your decision due to the influence of others. Sometimes other people's opinions may appear reasonable, prompting you to change your mind, but only later do you realize that your decision is the most correct. In short, the opinions of others are only a reference, and one's own opinions are the decision to buy or sell.


(9)When unwilling to do so, hold on and watch for the time being
It is not necessary to enter the market every day. Beginners are often enthusiastic about buying and selling, but successful investors will wait for opportunities and leave the market first when they feel confused after entering.


(10)Make a quick decision
When investing in the foreign exchange market, there are many psychological factors that can lead to failure. A common situation is when investors face losses and know that they can no longer be complacent, but often hesitate and fail to make a decisive decision, resulting in deeper and greater losses.


(11)Forgetting past price points
The past price range is also a psychological barrier that is quite difficult to overcome. Many investors make incorrect investment judgments due to the influence of past price levels. Generally speaking, after seeing high prices, when the market falls back, one may feel quite uncomfortable with the new low prices that appear; At that time, although various analyses showed that the future market would fall again and the investment climate in the market was very bad, investors not only did not sell their holdings before these new low price levels, but also felt very "low" and had the impulse to buy, resulting in being firmly trapped after buying. Therefore, investors should "forget the past price levels".


(12)Patience is also an investment
There is a saying in the investment market that goes, "Patience is an investment.". I believe few investors can achieve this. People engaged in investment work must cultivate good endurance, which is often a key factor in success or failure. Many investors, not because of their low analytical ability or lack of investment experience, but because they lack endurance and buy or sell too early, resulting in unnecessary losses.


(13)Set a stop loss position
This is an important investment technique. Due to the high risks in the investment market, in order to avoid losses in the event of investment errors, we should place a stop loss order every time we enter the market for trading. That is, when the exchange rate drops to a predetermined price and may even fall, the transaction should be settled immediately. Therefore, this type of order is a limit loss order, so that we can limit the further expansion of losses.