Reverse Thinking Money Tips

Category: Money Tips Date: 2005-12-28

Why do we adopt technical analysis? One important reason is that technical analysis can give our approach and appearance of the signal, let's get rid of wishful thinking in human nature, greed, arrogance froward weaknesses. And it is these human weaknesses, so that speculative trading become one of the most difficult to master the art. But the fact that people are not machines, can not completely rely on technical analysis, will be able to overcome the weaknesses of human nature. Therefore, we also need to study the mass psychology.

We do deal fails, usually include the following situation:

1, the foreign exchange market in the gossip no doubt;

2 and stubbornness, has been see, whether it is right or wrong;

3, if the transaction do not own perspective, on the random guess;

4, following the herd;

5, there is no patience;

6, greedy to hope that the Ministry of capture in the end or bottom;

7, and never on the sidelines;

8, take small profits and large losses to endure

The occurrence of these cases, the main reason is that

1, small and medium retail form of personal opinion is of limited value, because they are usually wrong.

2, human weaknesses, including wishful thinking, greed, arrogance froward, forcing people to stay away from objectivity, subjectivity often lead to arbitrary conclusions.

3, if the stubbornly clings stubbornly to his own point of view, it could go all the way, whether it is right or wrong. Perhaps, no more than a kind of instinct to defend their point of view as well as refusing to admit its mistake and to be more stubborn.

Then we get rid of human weakness to bring our trade vulnerabilities? May wish to adopt about thinking differently. Reverse thinking first and foremost condition is to master the public's perception. This requires a careful study and sinks a lot of news commentary, we can see from quite accurately the views of the people on the currency markets. But if you already own on the foreign exchange market has its own strong feelings, have their own judgments, you can easily create misjudgment of the public's perception. You think they have mastered the public's perception, and then reverse thinking to action, in fact, only confirms that you have existed on the currency markets view. Therefore, the need to wait for some time to develop the habit of thinking outside the box, once a habit, you see Quotes will be to overcome the weaknesses of human nature, more objective of the.

And reverse the trend of thinking more appropriate to reverse the market trend in the long run, observations more integrated. But the more such times, the more we should see more comments, more unified views of the public, the trend reversal time to come.