Any investor with some operating experience knows that the market is a highly difficult profit-making industry, because there are not many investors who can make stable profits in this market for a long time, and the success rate is less than 10%. 80% of a novice trader with no practical experience will be eliminated within 3 months to a year. This is a fact, and every investor must have a clear understanding of this.
Of course, the main reason for this situation is the market itself, and it is impossible to eliminate this loss, so this is not the focus of our concern. What we should care about is what behaviors lead investors to failure? I have summarized the following reasons:
1. Blindly entering the market without knowing much about the market. It can be said that 99% of foreign exchange speculators enter the market under such circumstances. This is one of the main reasons for losses. In fact, this industry is the same as other industries. It is impossible to succeed without systematic learning and a certain amount of time.
I remember when I first entered the market, I felt completely confused. I had no idea what the market was like, how to open a position, let alone how to close a position. I mainly asked my broker because I thought he was my teacher and I would be right if I listened to him. But the fact is that the operation was not ideal. Fortunately, my stop-loss view was still strong. So after operating for a month, I lost 20%. I felt that this would not work, so I stopped operating and entered a two-month learning phase.
The correct approach is: before entering this market, conduct theoretical study for at least three months to half a year. If you do this, your probability of failure will be greatly reduced.
2. Not having a good teacher is the second reason for our failure. Looking at all industries, there is no industry that does not need a teacher. The so-called teacher is to impart knowledge and solve doubts. With a teacher, we can avoid many detours. When we encounter difficulties, the teacher can give us timely guidance, just like the investment master described in the book "Speculation Wisdom".
80% of them succeeded after meeting a good teacher, which proves the necessity of having a teacher. The correct way is to have a good instructor when you enter the market. You can ask him questions at any time, and he can point out your mistakes that you cannot find yourself.
3. Overtrading or too frequent operations. I think this is the third major reason for losses. Overtrading is manifested as heavy positions. This method is still okay for stocks. But if it is used in the currency market, it is simply fatal. I met a friend who increased his funds by 7 times in less than two months. However, in the volatile market of this month, not only did he return all the money he earned to the market, but he also lost more than half of his principal.
Too frequent operations, because this is the operation method adopted by most investors, so this is the reason why most investors fail. Frequent operations not only make us pay high transaction fees, but more importantly, make us highly nervous. The slightest carelessness that leads to losses will make our mentality worse, and we will make mistakes even more.
The corresponding correct operation method:
1. The size of the position must be kept as low as possible, at least lower than the level taken by most people. Facts have proved that those who survive in the market for a long time and can make stable profits have very low positions.
2. The number of operations should be reduced as much as possible. To reduce the number of operations, mid-term operations should be used as the main method, and short-term operations should be used as the auxiliary method. Try not to do intraday trading. This method must be remembered. However, the method adopted by most traders is exactly the opposite. They mainly use intraday trading and short-term operations as the auxiliary method, and basically rarely hold mid-term positions.
4. No stop-loss order was placed to limit the loss, or the stop-loss order was placed but not strictly enforced, resulting in a loss. I met an investor. He invested more than 200,000 yuan at the time, and his operation was short selling. As a result, he did not know how to stop loss, resulting in losses. After two months, the funds were only more than 30,000 yuan. This example is a vivid lesson that every investor should learn from.
There is another situation where investors also set a stop loss, but when the price reaches the stop loss level, investors artificially move the stop loss level back step by step. As a result, when the stop loss is called, the loss is already very heavy. This reason is also one of the main reasons for investors to blow up their positions. The corresponding correct operation method is to strictly stop loss to avoid being liquidated due to one or two serious losses.
5. Not daring to win boldly. Only when we make a profit, we should expand the profit as much as possible, only in this way can we make up for the previous losses. However, many investors do the opposite at this time. They close their positions early after making a profit. At the beginning of the previous bull market, many investors built long positions. However, it was precisely because of the premature closing of long positions that they missed an opportunity to make huge profits.
The correct operation idea is: you must be greedy when you should be greedy, and you must not be greedy when you shouldn't be greedy. The key question is when to be greedy and when not to be greedy. So how to solve this problem? The main thing is to have your own basis for closing positions. If you have your own basis for closing positions, this situation will be well solved. Some people say that you should stop being greedy, so I want to ask, how can you offset the previous small losses without a big win? #币安合约锦标赛