How to make money from hot money

From experience, there is no secret to foreign exchange trading. If you have to have it, you must buy low and sell high. If you want to make a profit, you must remember these two words: quit greed. That is, greed, fear of loss, and don't take profits in order to get more, and the result is often more loss; everyone has the fear of loss, but some people are reluctant to cut meat once they are caught, and the result is deeper and deeper. Looking at others in a hurry to make money, in fact, looking back, you are right to be afraid of losses, but you don't even have the opportunity to make money. What about profit? The foreign exchange market talks about short and fast, with a profit of 1-2% each time. According to the weekly calculation, how much is it a year; according to the monthly calculation, how much is it a year. As long as you treat it with a normal heart, its return to you is very objective. Maybe someone will argue with me that the yen rose from 147 to 110 in a month, but there have been several times in the past few decades. I have seen hindsight, and I have not seen such a winner. Now let me introduce to you some shallow experiences I have accumulated in the foreign exchange market over the past few years: from Wednesday to Friday in the first week of each month, Europe and the United States release important economic data, do not blindly enter the market; the pound fluctuates very regularly, basically if it rises within a week, it is an upward market. If it falls within a week, it is recommended to wait and see for a week.

The yen, the most profitable currency, is the most affected by the news. As soon as there is a disturbance, it will be reflected. It is recommended to move in and out quickly. The Australian yen is a currency that conforms to market laws, and the operation is recommended to follow the pattern. The euro is the most irregular currency. Every rise and fall of 300 points has a repeat. The operation is recommended to be sent out as soon as possible.

In order to seek a certain economic purpose, international funds will be frequently transferred between various markets, which is also a main way of international capital flow. Under a floating exchange rate system, capital flows (especially short-term capital flows) can increase or decrease the fluctuation of currency exchange rates. Whether it is currency exchange rates that increase volatility or stabilize, the ultimate purpose of international capital flows is to seek profits. The higher the profit, the capital flows there. In current personal foreign exchange transactions, if the currency you buy and sell is in the same direction as the international capital flow, then you will make a larger profit. Therefore, individual foreign exchange traders should pay close attention to the direction of international capital flows.

In the current internationalforeign exchange marketThe most common capital flows are mainly manifested in the following aspects:

First, the flow of trade funds.

It generally refers to the flow of funds generated by exporters and importers in the purchase and sale of goods.

Second, the flow of bank funds.

On the one hand, the bank due to the needs of business, such as arbitrage, arbitrage, long and short position offset, position transfer, etc.; on the other hand, it also shows the funds used by central banks to intervene in the foreign exchange market when their own or other currencies rise or fall excessively.

Third, the flow of hedge funds. The flow of this part of the funds is manifested in:

1. Hedge funds. Due to the unstable political situation in a country or region, capital outflows are caused in an attempt to ensure safety.

2. Currency preservation funds. This part of the funds is generally invested in high-interest currencies, that is, funds flow from low-interest currencies to high-interest currencies. High-interest currencies will be favored and sought after by the market, such as the US dollar, the pound, etc. At the same time, a country's balance of payments, fiscal policy, etc. will cause the flow of this part of the funds.

IV. The flow of speculative funds.

The flow of this part of the funds has a huge impact on the exchange rate fluctuations of the currency, and it is also the fastest. For example, on the morning of October 7, 1998, the exchange rate of the yen in Tokyo was 128 yen per US dollar, but on the European market that night, the yen rose to 111.70 yen per US dollar, an increase of nearly 13% in a single day. This shows the role of speculative funds in the international foreign exchange market.

How can investors grasp the trend of international mainstream funds?

1. To understand the situation of various relevant international financial marekts and investment markets. Such as the stock market: including the Dow Jones index in the United States, the Nasdaq index, the Hang Seng index in Hong Kong, the Nikkei index in Japan, etc. The bond market of major countries in the world, gold, oil prices, and related commodities, futures markets, etc.

2. To grasp the flow of funds between various markets. Such as the flow of funds between the international stock market and the foreign exchange market.

3. Have the ability to distinguish between primary and secondary international capital flows.

4. Have certain analytical tools (analysis software) as the foundation. Such as technical charts, market instant messages, real-time foreign exchange market quotes, and related economic data.