Foreign exchange investment refers to the exchange behavior between different currencies made by investors in order to obtain investment income. It is characterized by high risks, but the risks are controllable, the operation is flexible, the leverage ratio is large, and the income is high. Then, what are the reasons for the profit and loss in foreign exchange trading?
1. No risk awareness, no stop loss. This is the most common. There is no stop loss in the transaction, the general direction is right, there is always a chance to profit, or luck, and profit for a while. Once the direction is reversed, the deeper the set, the lower the balance of the account, and the situation is out of the game. (Do not learn to set a stop loss, stop loss must not be set, even if there is a big point must be there)
2, heavy positions trading. According to our normal transaction, we only use about 5% of the funds (up to 10%) for each transaction, so we have enough funds to take risks, so as not to be affected by 1-2 losses. Trading and operations. However, many investors always like to carry out heavy positions. Once they have 1-2 times, they will lose most of their funds in the account. The more they lose their mentality, the more they lose their minds, and the investment is gambling. The result can be imagined.
3. Lack of technical analysis skills and trading skills. Experience is the most valuable in trading. I don’t know the analysis of the market, I can’t find the law of market volatility, I don’t realize the true nature of foreign exchange trading, the transaction is completely based on feelings and mood, and finally the loss is too much, slowly losing confidence in investment and trading, resulting in the final loss. Departure.
4. Technology, lack of patience. There are more such investors. They are very good at technology, and the market analysis is also very accurate, but in the end it is still a loss. The real reason for such investors to lose money is the mentality. It is the courage to lose money, no courage to make a profit. In other words, when doing the wrong direction, they set the stop loss and also control the stop loss each time. But when they look in the right direction, they can't take profit-making orders. If they make a small profit, they will make a profit. That is, they usually say that they are "losing big and making small". In the end, they still can't make money.