Is foreign exchange trading a zero-sum game?

What is a zero-sum game?

We all know that.foreign exchange marketIn every transaction, there are buyers and sellers, for example: you make an extra lotgoldAt the same time, someone will be shorting 1 lot of gold. And when your gold multiple orders make a profit, the person who is shorting gold will lose money. It can also be said that in foreign exchange trading, as long as someone is making money, someone must be losing money.

So the sum of gains and losses still equals zero (we won't discuss it here)brokerThe handling fee charged), there is no possibility of win-win cooperation between the two parties, which is the meaning of "zero-sum game".

For example, 22 years ago, one dollar was exchanged for 360 yen. At present, one dollar is exchanged for 120 yen. This means that the value of the yen is rising, while the value of the dollar is falling. In terms of total value, it changes and changes without increasing or decreasing value. Therefore, some people describe foreign exchange transactions as a "zero-sum game", or rather a transfer of wealth.

How can it be reduced to zero?

Many people think that the key to making money from losing money is finding the right trading opportunity. This sounds difficult, the truth is difficult, and it is also very important. But more importantly, before the right trading opportunity appears, according to the inner urge to trade, make orders, and make money, let the market churn up and down, I can't sit still. This is easy to say, but after the real deal, I know how difficult it is.

The market was clearly divided, and there were very few certain trading opportunities. The point at which most people entered the market was actually plausible. After looking at the two trading directions, they could find an explanation to justify it.

Looking back on the trades you have done, when the order in your hand has a considerable profit, have you ever suffered like when you were holding a loss order, staring at the market every minute and every second, and daring not to leave for a moment, always hoping that the illusory rebound/adjustment can get you out of the way? Do you still remember the trembling and worrying about gains and losses? In fact, you are still the same you, your skill level has not changed, but your mentality is completely different.

Different, why? The profit and loss results of the order are different.

Therefore, in order to protect the mentality and cure the root cause, it is still necessary to return to seeing the right thing and doing the right thing. Without the ability to trade correctly, talking about the mentality is a source of water without roots, or even just a fig leaf to cover up your unqualified trading ability. On the contrary, when you have the ability to trade correctly, the mentality problem will naturally not be a problem. The so-called haste and then know the etiquette, with enough profit protection, naturally take it easy.

Always keep in mind that we are not in this market to hone our minds, to destroy humanity, to make profits and make money, that is the purpose. Don't do it, take trading as the purpose, or even take trading as the purpose, indulge in it and forget your original intention, this will not be worth it. Then the most important thing is the great risk of foreign exchange trading, and what every investor should keep in mind is that its risk often exceeds that of other financial instruments, such as stocks. So we should be familiar with the characteristics of the foreign exchange market, and then learnHow to manage capital and risk effectively。

Finally, there are two kinds of differences in the foreign exchange market. Some people think that the foreign exchange market is a "zero-sum game", and some people think that the foreign exchange market is not a "zero-sum game". Each has its own opinions and is on a par. In any case, the foreign exchange market is an inevitable product of economic globalization, and it must have value for the entire financial marekt and even for society. In other words, the "zero-sum game" is not without value.

The financial industry acts as a lubricant in the economy, which is why all countries are vigorously developing the financial industry. For ordinary people, as long as they live in modern society, they will definitely come into contact with the financial industry. We cannot make one thing perfect, and everything must have flaws. Therefore, we should pay more attention to the convenience and help brought by the foreign exchange market to people's lives, make good use of the tools of the foreign exchange market, and then reasonably avoid risks. Only in this way can we make our investment path not a "zero-sum game".