First, do not "blindly" the market trend, to identify the real trend of the market is the key
Every forex trader wants to go with the flow, but this "potential" is the price trend predicted by the trader himself, not necessarily the actual price trend, because the forex trader's prediction is biased from the actual trend of the market. Trading includes fundamentals, technical information, public opinion, investor sentiment, etc., which is usually not difficult to identify. Failed investors often abuse the concept of homeopathy. When the market is trendless, they still see the rise and go long, see the fall and go short, which is why investors often "slap left, slap right". Therefore, it is extremely important to distinguish between trends and the stages in which trends are located.
Second, do not blindly enter, choose the opportunity to find the right entry and exit point
Even if the trend can be correctly judged, it does not mean that Forex trading will necessarily be profitable. In Forex trading, what really determines whether a trade wins or loses is the trading operation, that is, when to enter the market and when to leave the market. Generally speaking, entry points are the key to success or failure. The quality of entry points directly affects the success or failure of trading. Poor entry points directly lead to an increase in the loss rate and a decrease in the overall profit-loss ratio. Therefore, when entering, be sure to wait patiently for the best time and do not blindly enter.
Third, do not blindly choose leverage, combined with their own funds and risk tolerance
The role of leverage in Forex trading is to allow investors to buy and sell larger amounts of money with a small amount of money. But leverage is a two-way street, and once your trade is contrary to the market, the loss will also be magnified along with the leverage. In addition, in the actual homeopathic trading operation, how much leverage is used depends on their own margin and risk tolerance.
Fourth, refuse to repeatedly defeat and constantly cultivate a good trading mentality
The trading mentality is a psychological state that is formed for a long time and is affected by short-term trading results, and this psychological state will greatly affect the short-term trading strategy, thereby affecting the trading results. The trading mindset is the least difficult to grasp, which is the biggest obstacle to the success of most forex traders and the biggest obstacle to going with the flow. That is, knowing that the market trend has gone, but refusing to wait for the short position. Obviously, the recent transactions are very poor, but they have repeatedly lost battles, traded frequently, and want to recover recent losses, but have caused greater losses. Therefore, we must cultivate our own trading mentality and develop good trading habits through a series of self-discipline measures.
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