To succeed, people often say that attitude is everything, and so is foreign exchange trading. It is necessary to learn the foreign exchange trading experience of successful people with an open mind. As a slogan to express the power of positive thinking. To put it simply, we should have a positive attitude in doing things.
As long as we keep positive thinking and work hard, we can finally succeed. But in the field of trading, especially foreign exchange trading, it is not enough to rely on attitude alone. In addition to a positive attitude, we should also maintain a good attitude and learn from successful foreign exchange trading experience.
Long term stable profit
As a professional trader, what we have to establish is the concept of long-term sustainable and stable profits. We should not pursue overnight wealth, that is, we should not bring gambling mentality into the market. Investment is a very serious thing. When you want to gamble with the market
At that time, the foreign exchange market becomes a gambling market for you. Have you ever heard of successful gamblers?
2. Objective transaction is better than subjective transaction
Objective signal and subjective signal have their own advantages and disadvantages. Every investor should build up confidence in trading and trust his own judgment, but overconfidence may lead to overconfidence in subjective signals; objective signals are often very reliable, but the biggest disadvantage is to send letters
It is easy to delay the signal because most of the technical indicators are caused by the delay of sending signals.
Objective trading and subjective trading should complement each other. When there is a contradiction, you need to make a choice according to your accumulated experience. If you can’t make a choice, please believe in the objective signal. When the objective signal and subjective signal are consistent, further confirm that your trading is likely to be correct.
3. Get what belongs to you, don’t be greedy
Every day, there are opportunities. If the opportunities are implemented in the ultra short term, they can even be described as unlimited opportunities. However, our energy is limited, and the opportunities we can seize are also limited.
It is also about the choice of opportunities. It is about facing the temptation of excessive trading opportunities and the market. We should only grasp the opportunities that we can grasp and grasp with basis. We should build positions with rules, and we should build positions without rules
Give up trading, or just try to trade small positions, trying to create new trading rules.
4. Avoid fear and regret
Fear and regret are the most common faults of foreign exchange market traders, and they often become the key factors affecting the trading mentality. Fear is reflected in fear of shrinking profits, fear of market turn around, fear of hitting the stop loss and turning back. The three contents that some investors fear are actually completely psychological
In the trouble: fear of profit shrinkage performance do not trust their own trading plan, do not believe their own judgment; fear of market turn is not aware of the market trend is not easy to reverse, even if there is a reversal, there are stop loss price as risk control, according to the new market
The reason is that there has been such a situation, but investors have not looked for the reason from the method and probability of stop loss setting. There is no unchangeable trading method and no unchangeable opportunity in this market.
Whether it is investment in domestic market or foreign market, whether it is investment in general goods or investment in financial goods, the basic investment strategy for beginners is consistent, especially in the foreign exchange market. Although everyone’s investment strategies are different, some of them are basic.
Investment with spare funds
If investors invest with the necessary expenses of family life, in case of losses, it will directly affect the livelihood of the family, and the chances of failure in the investment market will increase. Because when making money with a sum of money that should not be used for investment, we are already at a disadvantage psychologically, so it is difficult to maintain an objective and calm attitude in decision-making. Do as much as you can afford.
Don’t trade too much
To be a successful investor, one of the principles is to keep 80% of the capital at any time to cope with the fluctuation of price. The cost of each transaction is only 10% to 20% of the principal. If you don’t have enough money, you should reduce your sales contracts. Otherwise, you may be forced to “blow up your position” to free up money due to lack of money. Even if it turns out that your vision is accurate, it won’t help.
Don’t run out of ammunition at one time. Bullets can be loaded at any time.
Face the market squarely and abandon fantasy
Don’t be sentimental, look forward to the future and remember the past too much. A U.S. futures trader said: a person full of hope is a beautiful and happy person, but he is not suitable to be an investor. A successful investor can separate his feelings and transactions.
The market is always right, the wrong is always their own.
Don’t change your mind rashly
It’s very dangerous to make a decision based on the current market price and the change of the market price.
An iron army must have iron discipline.
Make appropriate suspension
Trading day after day will slow your judgment. A successful investor said: whenever I feel that my mental state and judgment efficiency are as low as 90%, I can’t make money. When my state is lower than 90%, I start to lose money. Therefore, I suggest that I put everything down and have a rest for a few days. A short rest can help you to understand the market and yourself again, and help you to see the direction of future investment.
When you are too close to the forest, you can’t even see the trees in front of you.
Don’t be blind
Successful investors don’t follow others blindly. When everyone thinks they should buy, they will sell. When everyone is in the same investment position, especially the small investors follow up one after another, the successful investors will feel dangerous and change their course. This is the same as the reverse theory, when most people say they want to buy, you should wait to sell.
Truth is sometimes managed by a few hands.
Refuse others’ opinions
When you grasp the direction of the market and have a basic decision, don’t change your decision easily because of the influence of others. Sometimes other people’s opinions seem reasonable, which makes you change your mind. However, you find that your decision is the right one afterwards. In short, other people’s opinions are only for reference, and one’s own opinions are the decision of business.
Advice belongs to others, and money belongs to oneself.
It is not necessary to enter the market every day. New entrants are often keen to enter the market. However, successful investors will wait for the opportunity and leave the market first when they feel confused after entering the market.
If the trading process is your greatest happiness, please trade every day…..
Make a quick decision
When investing in the foreign exchange market, there are many psychological factors leading to failure. A quite common situation is that when investors are faced with losses and know that they can no longer be lucky, they are often hesitant and unable to make an immediate decision. As a result, they fall deeper and deeper and their losses increase.
I’m afraid of mistakes, but I’m afraid of procrastination.
Forget the past price
“Past price” is also a very difficult psychological barrier to overcome. Many investors are affected by the past price, resulting in wrong investment judgment. Generally speaking, after seeing the high price, when the market falls back, they will feel quite unaccustomed to the new low price. At that time, even though various analysis shows that the market will fall again in the future and the market investment climate is very bad, before these new low price levels, the investors will not only not sell their own goods, but also feel “low” and have the impulse to buy. As a result, they will be imprisoned after buying It’s locked in. Therefore, investors should “forget the past price.”.
Remembering “history” means betraying the market.
Patience is also an investment
There is a saying in the investment market that “patience is an investment“. I believe few investors can do this. Foreign exchange investment and trading people must cultivate good endurance, which is often a key to success or failure. Many investors do not have poor analytical ability or lack of investment experience, but lack of endurance and buy or sell too early, resulting in unnecessary losses. For example, in a year, the US dollar has been rising, so it is an investment to hold us dollars all the time?
The early bird doesn’t necessarily have worms to eat.
Stop loss and profit
This is an extremely important investment skill. Due to the high risk in the investment market, in order to avoid the loss in case of investment mistakes, we should stop loss and stop profit every time we enter the market. That is to say, when the exchange rate falls to a predetermined price and may fall, the transaction should be settled immediately. Therefore, this kind of calculation is an order to limit the loss, so that we can limit the further expansion of the loss. Only in this way can we maximize our interests and minimize our losses. There is no omnipotent theory, no omnipotent technical analysis method, no omnipotent analyst in the world. When any brilliant theory, precise method, and superb analyst is wrong, only setting a stop loss can save you from heavy losses. Remember!
Please fasten your seat belt when working at height.
Pay attention to potential but not price
When we trade, the reason why we buy a currency is because we expect it to appreciate. We buy it in advance and then sell it to earn a difference. This truth is very obvious. However, for those who are new to the market, they often forget this truth. Instead of focusing on the future trend of price, they focus on the transaction cost. They always hope that they can make a deal at a lower price than others. It seems that they are mentally retarded to buy a little bit higher. They often look for the lowest price for a period of time, miss the trading opportunity, and wait to see When the market saw the appreciation of the currency not bought, it was too late to regret. The correct way is to recognize the general trend and attack quickly. Don’t be confused by the immediate interests. Only it can rise. It’s right to buy it any time today and look at it tomorrow. Today’s highest price may be tomorrow’s lowest price.
To pick watermelon, don’t greedy sesame.
The key is self-discipline
A lot of trading strategies and techniques are familiar to people, even backward, what to follow the trend, to set a stop loss, make a quick decision and so on. Why are so many people losing money? Because many people are: can say, can’t do! Just imagine, the market is either up or down, the opportunity is half to half, even if there are five losses and five gains in ten transactions. If you can make up your mind, you will lose a little every time. I believe it is not difficult to make a comprehensive calculation.
Why do so many people lack self-discipline?
a. It is fluke psychology, indecision and other psychology that makes trouble.
For example, after a bull run, the market turns downward, and I always think, “it doesn’t matter, it will stop falling and pick up soon.” I constantly comfort myself, replace reality with “Hope”, and forget the principle of “no delay”.
b. It’s too subjective to make a mistake.
When you go to buy, you think “it will rise” and when you go to sell, you think “it will fall”. Did not think of “in case of wrong how to do”, pure Du Bo psychology, do not lose is not normal!
c. It’s inertia.
Knowing that stop loss and stop profit must be carried out at the first time, he is lazy to deal with it immediately. With the mentality of “it’s not too late to talk about it at that time”, he is often caught off guard by sudden changes in the market.
1. Plan your trades and trade your plans. 2. Hope and fear are the two greatest enemies of speculators. 3. Keep records of your trading results. 4. Maintain a positive attitude no matter how much you lose. 5. Avoid overconfidence——it could be your greatest enemy. 6. Continually set higher trading goals. 7. Stops are the key to success for many traders——limit your losses! 8. The most successful traders are those that trade long term. 9. Successful traders buy into bad news ＆ sell into good news. 10. The successful trader is not afraid to buy high ＆ sell low. 11. Successful traders have a well scheduled planned time for studying the markets. 12. Successful traders set profit objectives for each trade they enter. 13. Do not collect the opinions of others before entering trades——facts are priceless——opinions are worthless. In short successful traders isolate themselves from the opinions of others. 14. Continually strive for patience, perseverance, determination, and rational action. 15. Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting. 16. Avoid getting in or out of the market too often. 17. The most profitable trading tool is simply following the trend. 18. Never change your position in the market without a good reason. When you make a trade, let it be for some good reason or according to a definite plan; then do not get out without a definite indication of a change in trend. 19. Losses make the speculator studious——not profits. Take advantage of every loss to improve your knowledge of market action. 20. The most difficult task in speculation is not prediction but self－control. Successful trading is difficult and frustrating. You are the most important element in the success equation.
Don’t try and run before you can walk. If you are new to trading you must realize that you won’t become wealthy and successful overnight. There will be a period of learning in which you should use the tools available to research the various currency pairs, trading strategies, tools etc. Setting up an account and just getting carried away in the excitement will only lead to you losing money and not maximizing your opportunities.
Learn About The Industry
What do you really know about Forex trading? OK so you understand the basics of the currency pairs, the majors, minors and exotics and how to make a trade but do you know everything there is to know. What is a Pinocchio strategy or a candlestick chart for example? Like everything, when we are new to it there is still so much to learn. You can’t just get in a car and drive off if you’ve never had a lesson, right?
Choose a Great Broker
The right broker will make your Forex trading experience so much more successful, enjoyable and stress-free. Make sure you shop around and find the one that offers what you are looking for. You need to ensure that they provide a mobile responsive website or an app, a demo account, welcome bonuses and more importantly that they are licensed and regulated with a recognizable regulatory body.
Take Advantage of a Demo
Practice makes perfect and a demo account is an excellent, no-risk method of practicing your trades. Using a demo account means that you don’t have to risk any money until you are ready. You can become familiar with the platform, how to execute trades, get familiar with the tools and various charts and learn from your mistakes with virtual funds that don’t cost you a dime.
Investigate The Bonuses
When you are being bombarded with the temptation of one bonus after another you need to ensure that you weigh them all up and what you are indeed being offered. Most
Forex brokers will insist that you trade the bonus several before it can be withdrawn. Many brokers will offer a matched deposit or a percentage of your deposit while others will allow you to sign up and get a no deposit bonus. The no deposit bonus is great for allowing you to trade for free.
Practice makes perfect and a demo account is a great way to practice trading.
Don’t Risk Too Much
Like anything it is essential that you only risk what you can afford to lose. That’s not to say that you will lose it but there is a chance that you could. If you are trading your mortgage money, your rent or your car payment then don’t do it. You could lose that money as quickly as you could win and once it has gone there is no way to get it back except to keep trading with more money that you can’t afford to lose.
Markets react to global news, trading conditions change, new strategies are introduced and things are continually evolving. Nothing stays still and neither should you.
You need to make sure that you continue to educate yourself when it comes to all things Forex and financial. Keep reading information, after all, knowledge is power.
Trade on The Short Trades
Short trades mean quick wins hopefully. By trading on the short trades, rather than the longer ones there is much less that can go wrong. If you wait too long, then you could find your fortunes reversing. With the short trades, you can make your money and then move onto the next one. While you will find that you need to place more trades to make the same money at least you are slowly building up that account balance.
Treat it As a Business
Imagine you are investing in a business. You want it to be successful and profitable, so you take measured risks that will return on your investment. You don’t recklessly buy expensive machinery in your first weeks of trading unless you can afford to. Treat your trading as your own business and nurture it so that it grows and provides an income for you.
Only do What is Comfortable
You know what you feel comfortable with. If you are a ten-dollar trader, then don’t suddenly trade a thousand dollars on a single trade to make some quick money.
Imagine how many small trades it will take to make that back! Likewise, don’t suddenly start trading in different currency pairs on a whim unless you have researched the market and are prepared to start small.
Losing trades with pullback plays tend to occur for one of three reasons. First, you miscalculate the extent of the countertrend wave and enter too early. Second, you enter at the perfect price, but the countertrend keeps on going, breaking the logical mathematics that set off your entry signals. Third, the bounce or rollover gets underway but then aborts, crossing through the entry price because your risk management strategy failed. The final case is the easiest to manage. Place a trailing stop behind your position as soon as it moves in your favor and adjust it as the profit increases.
The stop needed when you first enter the position is directly related to the price chosen for entry. As you gain experience, you will notice that many pullbacks show logical entries at several levels. The longer you wait and the deeper it goes without breaking the technicals, the easier it is to place a stop just a few ticks or cents behind a significant cross-verification level. You will miss perfect reversals at intermediate levels with a deep entry strategy, but it will also produce the largest profits and smallest losses. If you choose to take many shots at intermediate levels, the position size needs to be reduced and stops placed at arbitrary loss levels such as 25- to 50-cent exposure on a blue chip and one- to two-dollar exposure on a high beta stock such as a junior biotech or China play.
JC Penney (JCP) breaks out above a nine-month trendline and rallies to a 52-week high at 11.31. It turns lower in mid-September after carving a three-week trading range and lands on triple support at the trendline, 50- and 200-day EMAs. The stock bounces just under support, drawing in dip buyers but the recovery wave stalls, triggering a failed breakout. A pullback play taken on the bounce requires a stop loss below that session’s low (red line) because price action into that level will flash all sorts of sell signals.