Foreign exchange market psychological behavior analysis three lessons

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become a successful professional foreign exchange Whatisforexrebatevestors, forexrebatenetwork not a light thing, you need to develop a long-term, sustained, stable profitability from this point, short-term success does not mean anything JP Morgan said: to become a currency expert, the first thing to become a self-control into the advanced tutorial, you need to re-concept yourself. Then establish a trading decision system that suits your own characteristics, bestforexrebate according to the system to trade in strict accordance with this advice, to be able to ensure that you do not lose more after short-term success! The first lesson: foreign exchange What is forex rebate psychological behavior analysis of the foreign exchange market is such a market: a large group of people of comparable intelligence, facing roughly the same market information, using roughly the same analysis and forecasting techniques, following the accepted rules of the transaction, a zero-sum game the result is that both a few experts from a few thousand, a few million dollars to start, accumulated tens of millions or even hundreds of millions of dollars of wealth, but also the masses have always made a small profit and big losses, until the blood was lost. For most small investors, their situation is even more unfavorable: limited experience, to pay a considerable tuition fee for each trap they have not encountered; limited capital, often just entered the door of the foreign exchange market, has run out of food; the possession of information is also at a disadvantage Therefore, the general public in this fascinating zero-sum game, often become the bottom of the pile The purpose of this section is to tell the public the root cause of their failure in a sense, the foreign exchange market losers, often not unable to overcome the market, but not to overcome their own 1, one of the psychological misconceptions: the crowded place to rush to blind obedience is a fatal psychological weakness of the public an economic data published, a news flash suddenly, a 5-minute price chart breakthrough, it The first to jump into the market is not afraid to lose money together, only afraid that we all make money only they did not earn remember the 1991 Gulf War, the pre-war situation a little nervous, the dollar rose, foreign currencies fell, January 17, the day of the war, almost 100 percent of investors are jumped into selling foreign currencies, the results of foreign currencies all the way up, the cashback forex was trapped, are coincidentally confident to wait for the market to turn back, the results naturally Its a basic principle that war and unrest are conducive to a stronger dollar, so why is it suddenly invalid? The public often make the same mistakes in the market, sometimes different financial companies are almost the same price of the single trapped, so that we all suspect that the market has a pair of eyes on their own In fact, the market is fair, the foreign exchange market is now nearly a trillion dollars a day, any individual is difficult to manipulate the volume of transactions in September 1992 because of the European currency crisis, the market speculators to throw the pound, so that the pound in a short period of time plummeted 5000 points, the Bank of England repeatedly intervene, and even the use of interest rate hikes, all to no avail in the foreign exchange market, for investors, do not go where the crowd is worth bearing in mind the aphorism 2, the second psychological misconceptions: the loss of fluke, win greed price fluctuations can be basically divided into uptrend, downtrend and disk trend, not to do a single counter-trend, if the counter-trend single is trapped, do not add to do a single to rip the average price level of the big potential although the end of the time, but do not guess the top or bottom of the market price and hold on to a price level, the top of the market price, the bottom, to be formed by the market itself, and once the formation of the potential, is the biggest profit opportunity, to decisively follow up…… these do single reason, many investors know, but in practice, they repeatedly do single against the market, a single Set several hundred points or even one or two thousand points, is not uncommon, what is the reason? An important reason is due to limited capital, into a single regardless of losses, profits, are disturbed by the monetary gains and losses, lost the ability to follow the technical analysis and trading rules Some investors often like to lock single when doing the wrong single, that is, with a new buy or sell single to the original loss single lock this method of operation is invented by some financial companies in Hong Kong, Taiwan, which allows investors to accept losses when the psychological Easy to maintain a balance, because investors can expect the price to go to the head of the open single In fact, investors in the lock single, reconsider making a single, often instinctively close the single profit, leaving a single loss, rather than consider the market trend in most cases, the price will continue to go in the direction of the investors losses, and then lock, and then open, unknowingly, the lock single price will be hundreds of points Hundreds of points to expand the understanding of the lock single, unintentionally become a single time to do counter-trend occasionally catch a rebound of one or two hundred points, but also often because the price of the loss single is too far away and refused to cut a single, the results are still increasingly large losses probably every investor knows the importance of quickly cut loss single, newcomers lose money are lost in the drift single, veterans lose money are also lost in this, drift single is the most fatal error of all mistakes, but, the Investors still repeat this mistake again and again and again, what is the reason? The reason is that ordinary investors often by the feeling of single, while the master is often according to the plan to make a single blind single resulting in losses, hanging their heads, nervous million percent, knowing that the trend has gone, or fluke psychology, indecisive, and constantly relax the price of the stop loss plate, or no stop loss plate concept and plan, always look forward to a complete reversal of the market price in the next resistance point over, the results of a loss that is enough to hurt the vitality and this Losses born of fluke corresponding psychological misconceptions, is to win the heart of greed under the purchase order, the price is still rising, why bother to single? The price began to fall, to take a look, and so the single turn profit for loss, more reluctant to single, to be forced to cut the head out of the field, has lost a lot of money Many people often have this experience: the loss of money single dragged again and again, has lost hundreds of points, a fluke back to only a loss of 20 or 30 points, expect to level the commission and then out of the field, a fluke to level the commission, and expect to earn a few dozen points and then out of the field … … the results of greed Often, the market price as if there are eyes, always in and you want to close the price of the position just a little short of turn around and go, and a few times after the loss, will be fear of the market, occasionally catch the big trend, the price into the good, but the set of ten points eight points will be nervous, so easy to make 10 points 20 points after the commission, it will be closed in the loss of money when you refuse to yield to the market, hard to top, make money When like stealing money dare not let go of the courage to win, so on, the capital loss is natural not surprising 3, psychological misconceptions of the third: superstitious foreign objects rather than the market itself into the transaction, another major psychological misconception is superstitious market of certain news, rumors, rather than obey the market itself trend 91 February 7 a few days ago, the Bank of Japan had intervened in the market, buy the yen to throw the dollar, so that the yen strengthened to 124 Nearby, around February 7, the Bank of Japan began to intervene in the market again, and Japanese government officials also made several statements that both the United States and Japan agreed that the yen continued to strengthen, so investors flocked to buy the yen, however, the yen began to fall in this case, investors often do not look for and believe the reasons that drive the yen down, but because there is to buy the yens orders are trapped, they look forward to the Bank of Japan every day to Save their own results, almost every day, Japanese officials talk about the yen should be stronger, and sometimes the Bank of Japan also a day into the intervention three or four times to buy the yen, but the price is all the way down, down almost a thousand points, many investors only do one or two buy the yen single, the loss of six or seven thousand dollars, cut the single cursing Japans word, but do not reflect on why they will lose so much money so that investors lose money is not Bank of Japan, but the investors themselves because at that time, the yen due to a number of scandals and political instability, the market chose this factor, and investors can not believe the market itself ordinary investors of course, there may be a first-class foreign exchange market, the key is to overcome the psychological misconceptions even the big banks traders, into the psychological misconceptions, but also inevitably lose money, and eventually eliminated by the market retail investors Investors can actually be divided into three kinds of people the first is the foreign exchange market is basically still very new to the beginner; the second is in the foreign exchange market has a little experience, think that the technical analysis, basic analysis has a unique experience of people; the third is after years of careful study and practice, indeed has been perfect people the second kind of people is the most large number of retail investors in a group, but also the most likely to lose money group, they tend to over They tend to be overly confident that they can easily use the methods they have mastered to make a lot of money from the foreign exchange market, the result is often: they fall into the trap of the market, until the capital lost, only to find themselves on the cutting loss single to fast, flat win single to slow and so the most basic foreign exchange market winning skills, have failed to thoroughly grasp a view that foreign exchange operations like cooking, raw materials, recipes, etc. are similar, but In fact, the foreign exchange operation is closer to the game, like playing Go, chess, the same game, different players to deal with, the end or win or lose or and, the top masters can only be a few both hard work and perception of people another part of the people in overcoming weaknesses after the growth of experience, there is a chance to become a good player in the foreign exchange market, and a lot of people even with experience will eventually lose of course, by the Foreign exchange market elimination does not indicate that you have intellectual problems, but only that you can not adapt to this market at present, but many ambitious people, chess skills may also be very ordinary, so if your savings are hard to come by and not much, do not have to be used to prove that you will play a single, know that occasionally win a game does not equal a good chess player, however, the foreign exchange market, although the opponent is deep and mysterious, but you can often join in the middle of the board, and Patience to wait until you are easier to grasp the situation when re-entry This is an excellent way to make up for your lack of skills simply rely on technical analysis or basic analysis, it is difficult to make accurate forecasts of the foreign exchange market trends because the factors affecting price changes are complex and variable, there are too many unpredictable events, it is difficult to rely entirely on technology and possible laws to solve the problem technical analysis techniques, some practical, some are fancy The real chances of winning a very high trick, Im afraid, will not be easily revealed, because the use of more people, it may fail in the foreign exchange market such an effective market, it is impossible for everyone to make money at the same time even if the practical technology, in different occasions and different times its utility may be very different for example, the broken point chase method, more than a decade ago was once very effective, now technical analysis techniques so common, the market trend The phenomenon of false breakpoints will increase a lot, the breakpoint chasing method will not always have a chance to win instead of spending energy on some flashy techniques, but also to understand the characteristics of the foreign exchange market trend, especially the behavior of the price level trend in a specific period of time

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