5 fatal mistakes that currency speculators often make
1. Do not use stress funds when investing
The so-called stress funds include loans, borrowing money to speculate in currencies, mortgage houses, etc. Obviously this is not a wise approach. Once you use stress funds, your mentality will inevitably be anxious, and your desire for funds will be stronger. Faced with a slight ups and downs mentality You are always uneasy, and you cannot look at the market trends with a normal mentality. It is obviously a big taboo for investors to put their wealth and life into it. Using stress funds is obviously a big taboo for investors.
2. Full warehouse operation
Buffett has a famous saying that all eggs cannot be put in the same basket. The biggest advantage of a full position is that you can make a full profit when you seize the market. The bad thing is that once the market and the operation direction are opposite, you will not be able to get your money back. The road ahead is endless. As the saying goes, a 100% increase of 10,000 yuan is 20,000 yuan, and a 50% decrease of 20,000 yuan will bring you back to the original point. Friends who often do contracts also know how much experience it takes for a contract trader to go 100%. You can only have it if you have a psychological burden, and risk being liquidated at any time:
3. Overtrading
The biggest sorrow for those who are new to the currency circle is to enter the market in a bull market. When they enter the market in a bull market, everything they buy is going up. At this time, they lose their sense of risk, and they mostly do frequent operations to make a profit with one coin. After a few points of money, I went to another place that had not risen to place an order, and started to place a shot to change places. The final result was to switch to the currency that continued to fall, and then there was no sense of stop loss. In the end, The more you lose, the more you lose, and you are eliminated by the market.
4. There must be a stop loss order
Stock trading and currency trading are both investment games. The key to this game is to learn to admit defeat and admit defeat. If you don’t admit defeat and your 10 million yuan drops to 1 million yuan, then you can use 1 million yuan to make more money. It takes 10 times for 10 million yuan. How long does it take and how much effort does it take to select such a currency? But it is common to encounter those currencies that return to zero.
It is a mentality to learn to recognize the outcome of currency speculation. It is wise to learn to always set a stop loss order for your orders. If you use a metaphor, an order without a stop loss is like a car without brakes. You will never Determine when danger is coming
