How to "dance with Zhuang" in foreign exchange speculation
Presumably few people will doubt the endless banker phenomenon in domestic class A shares. But in the global market with an average daily trading volume of trillions of dollarsforeign exchange marketIf there is also the manipulation of bankers, then the first reaction of many foreign exchange speculators is probably - "How could it be?"
But any veteran who is deeply immersed in the market can deeply feel that "there is an invisible manipulating hand in the foreign exchange market". Many people suffered from it repeatedly in their early careers in foreign exchange speculation, so they decided to develop a defensive skill.
The foreign exchange market has become more and more turbulent this year, and there are hundreds of thousands of unilateral big markets everywhere. Although many markets have long been foreshadowed, the length and magnitude of their duration still surprise most foreign exchange speculators. Our reporter often hears some overseas foreign exchange investors complaining about watching the other side intervene in the early stage of the market, but judging from experience, the currency pair has also begun to fluctuate violently, so they start to clear positions and open positions in the opposite direction. Who knows that the trading currency pair has continued to surge in the same direction like a stimulant, and the result can only be a stop loss. In fact, this is the result of the operation of big funds or bookmakers.
Big money is by no means good. They are constantly testing the positions and psychological goals of the opponent's market while building up their positions. They are always looking for opportunities to defeat the opponent when there is a psychological blind spot. Many people have the frustrating experience of constantly being forced to stop losses, and then the currency pair rode away in the direction of their original judgment. It is not so much that you are unlucky, but rather that the dealer has analyzed the psychological stop loss level of most of the opponent's market similar to your thinking mode. The rest is how to make dangerous moves to get you out.
A senior foreign exchange speculator said that the trend before a round of large market spanning hundreds of thousands of points is usually the process of large funds building positions. During the opening period, large funds are most afraid of being exposed to their true opening direction by small groups. At this time, they fluctuate up and down, or consolidate their cowhide, causing other investors to be confused about the east, west, and north. This is the real intention of large funds to make a market.
The traders of big bookmakers often only need to do two things well before they really pull up in their predetermined direction: the first thing is to complete the position as covertly as possible, so that the fewer followers, the better; the other thing is to direct the funds of retail investors and small and medium-sized investment institutions in the opposite direction as much as possible, so that they continue to stop losses, and finally get tired and leave the market.
If investors have a deeper understanding of the behavior of bankers in the foreign exchange market, you will not keep complaining about why you enter and exit according to classic technical indicators or operating signals, but often fall into the pre-dawn darkness. Little do you know that this is the weapon that big bankers use to deceive and slaughter their opponents.
Smart foreign exchange speculators never blindly rely on the theory of classic textbooks to operate, nor do they cling to the temptation of small waves. They usually make judgments from the long cycle of monthly and weekly lines, because the longer the cycle, the more difficult it is to artificially manipulate the technology, or it requires extremely high costs to control. Therefore, in the long-cycle technical laws, large funds can only bow down most of the time, unless they want to take risks.
Secondly, mature foreign exchange investors never have a fixed paradigm in mind, and they will not make any conclusive judgments and make decisive operations at any time. They will only judge the size of the winning rate and test it. Once the direction is wrong, they break through their "risk comfort limit" and stop the loss decisively. Because they know that most of the time they are not just competing with technical forms.
Please indicate the source: https://www.daoctech.com/fxschool/1651.html
Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
