5 fatal mistakes that currency speculators often make
1. Do not use stress funds when investing
The so-called stress funds include loans, borrowing money to speculate in currencies, mortgage houses, etc. Obviously this is not a wise approach. Once you use stress funds, your mentality will inevitably be anxious, and your desire for funds will be stronger. Faced with a slight ups and downs mentality You are always uneasy, and you cannot look at the market trends with a normal mentality. It is obviously a big taboo for investors to put their wealth and life into it. Using stress funds is obviously a big taboo for investors.
2. Full warehouse operation
Buffett has a famous saying that all eggs cannot be placed in the same basket. The biggest advantage of a full position is that you can make sufficient profits when you seize the market. The disadvantage is that once the market and the operation direction are opposite, you will have to recover your capital. The road ahead is endless. As the saying goes, a 100% increase of 10,000 yuan is 20,000 yuan, and a 50% decrease of 20,000 yuan will bring you back to the original point. Friends who often do contracts also know how much experience it takes for a contract trader to go 100%. Only with the psychological burden can you have it, and risk being liquidated at any time;
3. Overtrading
The biggest sorrow for those who are new to the currency circle is to enter the market in a bull market. When they enter the market in a bull market, everything they buy will go up. At this time, they have lost their sense of risk, and they are more likely to perform frequent operations and make a profit with one coin. After a few points of money, I went to another place that had not risen to place an order, and started to place a shot to change places. The final result was to switch to the currency that kept falling, and then there was no sense of stop loss. In the end, The more you lose, the more you lose, and you are eliminated from the market.
Excessive trading is not a good operation for experienced veterans. They euphemistically call it short-term operation. It is this kind of excessive trading that makes them unable to see the direction of the market clearly and eventually eliminates them.
4. There must be a stop loss order
Stock trading and currency trading are both investment games. The key to this game is to learn to admit defeat and learn to admit defeat. If you don’t admit defeat and your 10 million yuan drops to 1 million yuan, then you can use 1 million yuan to make more money. 10 million yuan requires 10 times. How long does it take and how much effort does it take to select such a currency? But it is common to encounter coins that have returned to zero.
It is a mentality to learn to recognize the outcome of currency speculation. It is wise to learn to always set a stop-loss order for your orders. A stop-loss order is the only barrier to your own funds in the currency circle.If you use a metaphor, an order without a stop loss is like a car without brakes. You are never sure when the danger will come, and the danger is also approaching step by step.
5. Always leave yourself the ability to trade again
It doesn’t matter if you go bankrupt once or twice. Unexpected and dangerous things will happen in the market at all times. No one can beat the market. You can beat a horse race, but you can guarantee victory in every horse race. The same is true for the same transaction. You must Give yourself the ability to turn around a second time, otherwise you will only be kicked out of the market. As an investor, the biggest sorrow is: when I understand the market trend, I have no money at that time. What a shame. great irony
Finally: There are always many stars in the futures contract market and few longevity stars; there are many shooting stars but basically no stars. Trading is not only a technical war, but also a war of one's own fund management, trading system and overcoming one's own human weaknesses. Never risk your life or fortune in investment.
Finally, I leave you with a question to think about: Why do people live?
