The three iron rules of currency speculation make it difficult to lose money!
Rule 1: Don’t read market comments after placing an order—that’s asking for trouble!
There are always two voices in the market, one is short and the other is long. If you listened, wouldn't your head become a rattle? Swaying from side to side, you may end up shaking yourself unconscious. So, after placing the order, I plugged my ears, closed my eyes, and calmed down, letting the storm surge, but I remained unmoved! To hell with those comments!
Real investors catch trading signals like a cheetah seeing its prey. They are fully focused. How can they have time to pay attention to the chatter of the market? They strictly follow the trading plan and are not disturbed by the outside world.
Iron Rule 2: Don’t stop losing money and lock up your positions—that’s digging your own grave!
Investment is risky, so be cautious when entering the market. Are you tired of hearing this? But the truth is the truth. If you don’t place an order, you will be fine. Once you place an order, you must be prepared to stop losses. Don't think that you are a god who can predict the future. The market will not let you go just because you are pitiful. When you are wrong, you must admit it; when you are beaten, you must stand at attention! Preserving the principal is the most important thing.
As for locking up positions, that is even more of the biggest taboo! Understanding the lock, unlocking it again, isn't this just like a cat and mouse game? In the end, I will be exhausted and may even lose money on both sides. Locking up a position not only loses money, but also makes you physically and mentally exhausted. Why bother?
Iron Rule 3: Don’t add to your position easily—that’s asking for trouble!
Some people, as soon as they see that they are heading in the right direction, they desperately increase their positions, as if the money was picked up. What should I do if I go in the wrong direction? Why don't you cry and faint in the toilet? Remember, dear friends, adding a position is not about buying groceries, the more the better. You have to wait until the right time to take action. Otherwise, your money may be like a meat bun beating a dog - it will never come back!
Of course, if you are a master trader and have a thorough plan, it is not impossible to increase your position appropriately. But once you find that your plan is wrong, you must decisively stop the loss and leave the market. Don't expect the market to sympathize with you, the market is a cold-blooded animal!
In short, you can't win in currency speculation by luck. You have to respect the market, revere the market, comply with the market, and strictly abide by trading disciplines to survive. Precision is worse than frequent operations to make every order worthwhile! Remember these three iron rules, it will be difficult to lose money!
