How to Avoid Foreign Exchange Investment Losses

This is a relatively large topic, and it is also a topic where there are many opinions and it is difficult to have a unified standard. I want to write about this content here, not to preach anything, nor does it mean that I will not lose money in trading. I just want to summarize my years of experience, communicate with interested friends, and remind myself to avoid repeating the mistakes I have made.

Stay away from the market

The internet has revolutionised the way information is disseminated. It is now easy to access financial information about any market in the world. At the same time, people have become more and more dependent on "information". People today track the movement of financial marekts almost as closely as they track the real weather in nature: up or down; bull or bear. Endless, almost moment-to-moment predictions of what the market will do in the future and what to do about it.

Although some people in every investor and every market will say that we should invest for the long term, we should use value investing, and don't care about small fluctuations every day, but every time investors hear market comments in the ears of market fluctuations, people's nerves are highly nervous, and they become more concerned about short-term fluctuations in the market, so "long-term investing" eventually becomes just a slogan. Stay away from the market, stay away from those meaningless daily market data, and relax yourself. Maybe losses will stay away from you.

Second, stay away from analysts

Financial analysts are a relatively interesting group. Most of them are very hard-working intellectuals, doing the most basic and ordinary work in the industry. They collect a large amount of relevant information every day, and eventually integrate various data to form investment reports for various related financial products. The duty of financial analysts is to gather important information and form reports for investors to make decisions. However, most of them have been misinterpreted here, especially in small industries such as foreign exchange and gold. Analysts have simply evolved into "fortune tellers". Today, how many points to how many points, what resistance, how much support, how many targets, where to stop losses, etc. Investors can only end up with losses under the guidance of these analysts. The utilitarian overtones make analysts' findings increasingly worthless, to borrow a phrase from Peter Lynch: "Never listen to the advice of any professional investor!"

Stay away from analysts, especially in gold and foreign exchange, and you will stay away from losses.

Third, do not predict

This is also a common mistake made by analysts, tirelessly predicting how many points can go up and how many points can go down, and the words are not amazing. The market is not used to predict, no one can accurately predict the rise and fall of the market, this is something only God knows. The only thing you can do in financial marekt is to follow, follow the trends that have been formed, hold all the way, all you have to do is "do nothing", "the money will take care of itself and reproduce by itself", don't be stupid and think that you are smart to do "kill the goose and lay the egg".

IV. Adhere to the correct analysis process

Proper analytical processes are important, especially when investing in international markets such as oil, gold, copper, foreign exchange, etc. Currently in the international market,foreign exchange marketThe bond market, commodity market, real estate market, and stock market are already like cobwebs, and one market move affects all other markets. Adhering to the correct analysis process from macro analysis to micro analysis, fundamental analysis to technical analysis, and cross-market analysis to target market analysis will make your investment more efficient

V. Stick to your ideas

Investors in any investment market are likely to discover investment opportunities earlier and better than professional investors, but most people give up their opinions with the "analysis help" of analysts and professional investors, and of course give up great profit opportunities. The key to investing is to believe in yourself and stick to your own opinions.