The secret of speculative foreign exchange small losses and big wins

  • 2023/2/26 10:06:39
  • read: 3
  • forextradingsessiontimes

Speculative foreign exchange is like combat, to learn to protect themselves first to protect themselves, in order to kill the enemy or their own sacrifice, how can then annihilate the enemy? The foreign exchange market is a survival of the fittest market after Zhang restarted real trading, the next thing that happened also let him underst forextradingmarket: the most important thing is forextradingtime how much you can earn at one time, but you can not steadily profit, a long-term foothold to survive Believe that foreign exchange friends have also had this experience: after buying a group of currency pairs, if the exchange rate fell sharply, it will hurry to stop cashback forex out of the field, and with the exchange rate But more often than not, we will encounter the opposite of the market, after the stop-loss, the exchange rate suddenly rebounded and rose sharply, so that you can not buy again, and the rebound price than your stop-loss price is higher so that after several times, we have no concept of stop-loss, that the exchange rate will sooner or later return to the purchase price above forex trading session times also I had a similar lesson after I returned to real trading from simulation, I encountered such a situation at the beginning, as soon as I placed a single, I set a stop loss of 30 points, 50 points of stop-win but every time after entering, the exchange rate often in the knockdown of my stop price, and then again up, and my original judgment of the trend, at that time, I can only console myself with bad luck I remember once, I was long USD / CAD, so it was at 1.00. I remember once, I was long USD/CAD, so I bought at 1.0452, and set a stop loss of 30 points, and a stop win of 50 points after entry, USD/CAD continued to rise as I had hoped, but after rising 20 points, the exchange rate suddenly turned around and fell down to 1.4510, just in time to knock off my stop loss, and after some minor consolidation, pulled a big positive line, rising rapidly to the same night, USD/CAD rose by more than 200 points And this wave of the market lost, I feel quite depressed, thinking if not set a stop loss how good it would be So, in the next few operations, if I feel my judgment is accurate, I will not set a stop-loss results, but also let me right a few times Gradually, I also ignored the importance of setting a stop-loss is precisely this mentality, which caused me a major loss of the next transaction was in the yen plunge at the time I was in 121.80 to buy USD/JPY, not long after entering, the exchange rate fell to 121.30, I did not get out, thinking that USD/JPY will certainly go up, it is estimated to see 123, and so on, and then went to bed the next day after waking up, USD/JPY fell to 120.50, and my entry price has been a difference of more than 100 points, I began to panic. I began to panic a little, but also have a trace of luck, think down so much, there should always be a rebound it, and then close my position on the rebound, so that you can lose less However, contrary to expectations, the exchange rate not only did not rebound, but also continue to fall, 120, 119…… to 118 when, because there is not much money left, I had to Close the position because I did not stop loss in time, this transaction let me lose a lot of money, not only the previous profits are lost in, but also lost the principal, the heart chagrin Therefore, I believe that the most important point of money management is to stop loss, timely recognition of losses out of the field, save the strength of the successful investor is a small loss, rather than a big loss and small win even if there is a high chance of success, such as the next single success rate of 99.9999%, make 100 or 1000 times in a row or not, if you do not understand the reasoning behind small losses and big wins, do not set a stop loss, the end result may be that 0.0001% of a mistake leading to a total loss, a loss of nothing the focus of capital management does not lie in the success rate, but whether you can do small losses and big wins are not afraid to lose 10 or 100 times in a row, as long as they can still survive, as long as Grab a chance to make a profit, you can make enough losses in front of you at once must learn how to lose money, which is more important than learning how to win money We should remember the advice of a financial giant warned the survival of the frightened since high profits opposite is high risk, we should draw a stop line in front of the terrible risk, it may be our lifeline