Reasons for foreign exchange investment failure

As long as investors with some operational experience know,foreign exchange marketIt is a difficult profit-making industry, because there are not many investors who can make steady profits in this market for a long time, and the success rate is less than 10%. A novice trader without practical experience will be eliminated within three months to one year. This is a fact, and every investor should have a clear understanding of this. Of course, the most important cause of this situation is caused by the foreign exchange market itself, and it is impossible to eliminate this loss situation. Therefore, this is not the focus of our concern. What we should care about is what behaviors led investors to failure? I have summarized the following reasons: First, in the case of knowing too little about the market, blindly entering the market can be said that 99% of investors are involved in the market under such circumstances. This is one of the main reasons for losses. In fact, this industry is like other industries. It is impossible to succeed without systematic learning and a certain amount of time. The correct way to correspond is: before entering the market, conduct at least three months to half a year of theoretical study. If you do this, your probability of failure will be greatly reduced.

Second, there is no good teacher, which is the second reason why we fail. Looking at various industries, there is no industry that does not need teachers. The so-called teacher is to preach and teach to solve doubts. Because of the teacher, we can avoid a lot of detours. When we encounter difficulties, the teacher can give us timely guidance. The correct way is: when we really enter the market, there is a good instructor. If you have any questions at any time, you can ask him for advice. He can point out to you in time what you cannot find but your mistakes.

Third, trading too much or operating too frequently, I think this is the third leading cause of losses. Overtrading is manifested as heavy positions. This method can be used in stocks, but it can be fatal if used in foreign exchange. I met a friend who once increased his capital sevenfold in less than two months, but in this month's volatile market, not only did he make all the money back to the market, but he also lost more than half of his principal. The operation is too frequent, because this is the way most investors operate, so this is the reason why most investors fail. Frequent operation not only makes us pay high trading costs, but also makes us highly nervous. A little carelessness will lead to losses, which will make our mentality worse, and make mistakes even worse. Corresponding to the correct operation method: 1. The size of the established position must be as low as possible, at least lower than the level taken by most people. It turns out that those who survive in the foreign exchange market for a long time and can make steady profits have very low positions. 2. The number of operations should be reduced as much as possible. To reduce the number of operations, then midline operations should be used as a living, short-term as a supplement, and day trading should not be done as much as possible. This method must be kept in mind. But the approach taken by most traders is exactly the opposite, focusing on day trading and short-term as a supplement. Basically, there are few midline positions.

Fourth, there is no stop-loss order to limit its losses, or the stop-loss order is not strictly implemented, the result is useless. I met a foreign exchange investor who invested more than 200,000 yuan at that time. His operation at that time was to short beans, but the result was that he did not know the stop-loss, resulting in a loss of nearly 600 yuan per ton of beans. After two months, the funds were only 30,000 yuan. This example is a fresh and vivid lesson, which should be taken as a warning by every investor. Another situation is that investors also set a stop-loss level, but when the foreign exchange price reached the stop-loss level, investors artificially moved the stop-loss level backward step by step, and the loss was already very heavy when the stop-loss came out. This reason is also one of the main reasons for investors to liquidate their positions. Corresponding to the correct operation method: strictly stop losses to avoid being liquidated due to one or two serious losses.

Fifth, dare not dare to win. Only when we make a profit, let the profit expand as much as possible, only in this way can we make up for the losses that have occurred before, and many investors are just the opposite at this time, with profits but early position squaring. At the beginning of last year's soybean bull market, many investors built long positions, but it was because they closed their long positions too early that they missed an opportunity to make huge profits. Corresponding to the correct operation idea: when you should be greedy, you must be greedy, and when you shouldn't be greedy, you must not be greedy. The key question is when to be greedy and when not to be greedy, so how to solve this problem, mainly to have your own position squaring basis, if you have your own position squaring basis, this situation will be solved very well. Some people say to quit greed, so I want to ask, how can I offset the previous small losses without a big win?