In foreign exchange trading, we all know that it is very common to win and lose money. If we win and make money, we are certainly happy. If we lose money, we should not be depressed. We should treat the loss as an accumulation of experience. At the same time, give yourself a long memory and warn yourself that such mistakes can never be made again. At the same time, we should sum up the experience and keep the lessons in mind. The following are the lessons that we can sum up.
First, we often hear a concept, that is, "heavy warehouse must die"! This heavy position is bound to die, which does not mean that a heavy position is bound to die, but that if the frequency of heavy positions is too high, the probability of failure will be greater. The reason is very simple. As a long-term foreign exchange, it will inevitably encounter some extreme situations, an extreme market or an unexpected event. A large number of transactions may lose more than half of the principal, or even short positions. If you walk too much at night, you will meet ghosts sooner or later. Under the strict control of stop loss in a day, placing heavy position occasionally may be acceptable, but placing heavy position overnight is definitely suicide.
Second, for three consecutive losses (especially for three trades of the same variety and direction), no matter how big the losses are, they must withdraw from the OTC market and stop trading for more than one day. The constant loss shows that people can't find that feeling. At this time, it is easy to incur more losses. Moreover, constant loss can make a person lose his head and make a big mistake.
Third, operate according to the actual market trend, not according to one's own forecast or expectation or fear. You can't buy because the market is expected to rise and you can't sell because the market is expected to fall. Don't talk about the market at all, but try to follow it. This is the key in the key. This is also the most difficult to understand thoroughly. A lot of people do. They predict that the market will rise in the morning, so they buy when there is a significant decline after the opening. Now, for example, the price of soybean meal is too high and should fall, so it will be sold within the year. However, it ignores a basic fact: soybean meal prices continue to rise.
The above three points are the big taboos in foreign exchange trading summarized by the small series. They are elaborated from three aspects: attaching importance to light positions, operating the trading essentials on the same day, and avoiding unnecessary subjective conjectures. I hope it will be helpful to your decision-making.