Three realms of foreign exchange trading Money Tips

Category: Money tips Release Date: 2006-08-25

Any person who entered the foreign exchange market, probably have the same experience, that is, no matter how fully prepared in advance (including technical, psychological, financial, etc. aspects), entering the foreign exchange market, are feeling confused, feeling foreign exchange market is so elusive . Although there were entering the foreign exchange market during a small period of time have gains, but almost everyone will experience confusion period, period of self-confidence loss, and even a lot of stop and Friends of this, from the starting point away from the foreign exchange market to grasp Shenglang institutions are now bottom of the list of the foreign exchange market through train Jiancang is not necessary to make only a sure win. In the author shallow experience, it is necessary to succeed in the foreign exchange is bound by the following three phases (This does not include other investments have had experience), also known as Chao Hui's three realms. Only the highest realm in order to ensure that foreign exchange markets in an invincible position.

Realm, one young bull and bold, such as tiger stage. Period of this phase can also be called recklessness. With a passion for the beautiful prospects of the investment market vision, or listen to hearsay, or induce, in the, and do not have sufficient experience and adequate preparation of the case of blindly into the foreign exchange market. The characteristics of this stage can be summarized as follows: First, ignorance of the foreign exchange market, or know little about the risk of completely do not understand money management. Second, the level of analysis, especially in technical analysis is limited, speaking a single or so-called basis of mere hearsay and expert guidance. Third, lack of practical experience, case of unexpected events easy to panic. 4 is a state of mind is not straight, you want to win kiasu, not psychologically prepared for a loss. The event of a loss, it will not reasonably regulate the mentality, refused to concede defeat, dead top Yingkang. Friends of this stage performance is often frequent and the out and out of a single volume, big loser big win. Especially in some early gains, this phenomenon more apparent. But at this stage of the Friends of the final outcome often is a fiasco.

Realm of the two, Laojianjuhua, timid as a mouse stage. This phase can also be called prudent period or period of wavering. At this stage and Friends, has been the currency of the ups and downs, often in the foreign exchange received trauma. Stimulated by the lessons of failure (and often rare success stories of the incentive), experience, maturity, technology increasingly seasoned, to do a single variety of skill have become more skilled, right within the expected range of errors and loss has also been a considerable affordability. But the most important feature of this stage is to remember the failure of the previous stage, rely too much on technical analysis, interested in certain kinds of technical signals and the technical details of the meticulous analysis of the general trend of a lack of confidence in judgments. At this stage of the Friends of the eyes, everywhere is resistance everywhere are supported by thinking about his next single, afraid of the next resistance is blocked, the former fear of wolves, tigers scared, and always find it difficult to start with. Even when a single, but also meet resistance that is running, difficult to obtain large profits. At this stage of the Friends often do not lose big to win big, but often times the profits would be buried in a mistake-ri. The more so, to become more cautious. Often without a loss between the endless self-confidence and reconciled.

The third realm, Dongche opportunities, art high bold phase. This phase can also be called maturity. The greatest feature of this stage: First, the peace of mind. The wind and waves on the foreign exchange market has become accustomed to no longer be a result of currency fluctuations and a rather bittersweet victory both times. Second is the foreign exchange market has a strong self-confidence judgments can be a more complete grasp of the trend toward currency markets, for the resistance to achieve their goals with the support of the former turning a blind eye. At this stage who, for technical analysis have a pretty good heart, but by no means blind faith in technical analysis. They are the same as the seasoned hunter, able to "sniff" to the foreign exchange market taste. In their view, any of the comments and messages are nothing but a reference for our own use, rather than listening to the letter. Third, the skilled operation of the means. At this stage were clearly aware of currency risks. Therefore, they know best how to protect themselves. They have to self-confident, not arrogant, know how to use a reasonable means to avoid the risk of the operation. Therefore, they in the foreign exchange in its capability, lose a small win big, as currency markets and the real winner of beach-goers.