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    Foreign exchange is actually very simple, as long as you keep it simple

    existforeign exchange marketIs it hard to make money? Is it not hard? Is it hard? Is it not hard? Well, there is a saying: those who are difficult will not, and those who are will not be difficult. I don't know if you have heard of it?

    In the early Paleolithic era more than two million years ago, it was estimated that a person who could add and subtract within ten was a master of mathematics. During the Anti-Japanese War in China, although most people were still illiterate, no one would think that addition and subtraction within ten was very advanced mathematical knowledge. But at that time, there were not many Chinese people who could mix four operations. Now, any middle school student can solve trigonometric functions.

    So, is math difficult? Of course, trigonometry is useless in our daily life. If you try to prove the trigonometry formula to make a date, it is estimated that the only end is to be blocked by the girl. At this time, you will solve that trigonometry is not as good as Lamborghini + Chivas.

    For the vast majority of traders who enter the speculative market, making a profit is almost an impossible task. The fact is also that less than 1% of people are said to have made a profit when they finally leave the market. It is conceivable how difficult it is to make a profit in the foreign exchange market.

    But why are there always some individuals who say that foreign exchange is actually very simple, and profitability is also very simple? This reflects the sentence said at the beginning of this article: Difficult will not be difficult, will not be difficult.

    235U+1n=137Ba+97Kr+2n, this equation doesn't seem complicated, but almost all readers will feel confused when they see it here, and even skip it directly to avoid brain burn. If we take this equation to Academician He Zuoxiu (He Zuoxiu, a particle physics, theoretical physicist, and a member of the Chinese Academy of Sciences.), people will know at a glance that this is the fission reaction equation of uranium. Hehe, by the way, He Zuoxiu's three words are pronounced: He zuo xiu, don't pronounce He zha ma like an organization, although it looks a bit like "He fried hemp".

    Many traders think that foreign exchange is very complicated, but in fact, foreign exchange is very simple. The difference lies in what method you use, whether you use it or not!

    Traders who believe that foreign exchange is very complex look at it from the perspective of the entire commodity operation. They believe that the rise and fall of this price is determined by changes in weather, geography, finance, production, transportation, consumption, population, policies, and so on. To do a good job in foreign exchange, you must grasp all these things. If there is any omission, or if you do not grasp it properly, you will lose money.

    Traders who think that foreign exchange is very simple feel that it is a waste of effort to know so much knowledge and information, because it is impossible to grasp every detail change. No individual can have comprehensive knowledge and information in the face of such a huge and complex market system. Anyone who uses this incomplete knowledge to judge the market is a kind of "blind man" behavior.

    Therefore, someone has put forward the theory of "market behavior is all-inclusive". It is believed that any factor that can affect the foreign exchange price of a certain commodity, whether it is fundamental, political, financial, psychological or anything else, is actually reflected in the market price. We just follow the footprint of the price, without predicting how the price will change.

    Just looking at the chart is the hallmark of these traders, who generally ignore the reasons for price fluctuations. Often, it is impossible for retail investors to understand exactly why the market works the way it does when the market price is in the early stages of trend formation, or at some critical turning point. At this time, there will be all kinds of news in the market, which can be overwhelming.

    At this time, the phrase "market behavior encompasses and digests everything" shows its great charm. No matter how market prices change, there is always some force at work, and this mysterious force that we do not understand may reflect a change in the basic conditions in reality. But we don't need to worry about this change, we just need to follow the pace of price changes and adjust our operations.

    Just like the girl you asked to let you dove, you don't need to guess if they are on a rich second-generation Lamborghini, and you don't need to kick the shared bicycle on the roadside angrily. The right thing to do is to immediately turn on your mobile phone and cancel the booked hotel room. Of course, if you book a small hotel for 30 yuan a night, that's another matter.

    When making an appointment, you need to calculate whether to go to a five-star hotel or a small hotel at the entrance of the alley according to the money in your pocket. Similarly, in foreign exchange, you should also plan your capital management according to your entry and exit operations.

    For us small individuals, the money in the market is almost unlimited, and the risk of the market is always there, whether you are a decades-old bird or a newcomer to Cainiao. No matter your level is high or low, as a retail investor, you cannot influence the operation of the market. Like some natural phenomena, it is beyond human control. If your neighbor says that he has single-handedly affected the price of international crude oil, would you believe it?

    Maybe some people will believe it, because the concept of "man will conquer heaven" is still deeply imprinted in the minds of many people. In 1987, wasn't there a Qigong master who extinguished the forest fire in the Greater Khinganling Mountains 2,000 kilometers away? But it would be interesting to let Mr. He Zuoxiu appraise this matter.

    But we are not Qigong masters, we are normal people. As long as we are normal people, mistakes are inevitable when doing things. Especially in foreign exchange trading, mistakes are normal. This is why we emphasize the importance of money management in a trading system, the main purpose is to prevent market risks. Just like in the face of a forest fire, a Qigong master is 2,000 kilometers away and can use his power to put out the fire. If he is in the fire scene, try it?

    Greed and fear are a kind of behavior that seeks advantages and avoids disadvantages. It is the nature of human beings, and it is the way of survival that has been trained by evolution for thousands of years. Just like when you meet a beautiful girl, you always want to go to the hotel quickly. If you meet a super dinosaur, if you don't run away, you are probably not human. But in the trading market, this kind of human nature is an obstacle to profitability, or this is the root of losing money.

    Making foreign exchange requires cultivation, which is based on ordinary human nature. Human greed is infinite, but the resources in this world are limited, so human beings can never satisfy themselves, which is also a unique pain of human beings as creatures. The operation of natural laws is not transferred by human will, and human beings can only follow but not change it, otherwise it will only increase the pain.

    Those who realize this can achieve peace of mind. And if someone insists on doing what they can't do, then there is no peace of mind. Almost everyone in the trading market dreams of getting rich overnight, so a good attitude is rare and rare. But then again, if everyone is at peace of mind, then there will be no market volatility, and this market will not exist.

    Admitting that the operation of the market is an objective law that cannot be changed by manpower, our operation becomes simple. As a result, our mentality is peaceful. Then we do foreign exchange with a calm and peaceful mentality, and making profits becomes simple. This is a virtuous circle that promotes each other and will eventually allow you to get your fair share in the market.

    If you are greedy and want more than your money and your system or even the market allows, then foreign exchange is not easy for you. If you always make simple things complicated, then success will never come to you.

    Just imagine, if a person always expresses 1 + 1 = 2 as y-c = ax ² + bx, can he do things smoothly in his life?!

    Foreign exchange is actually very simple, as long as you keep it simple.

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    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.