Forex Speculation - Beginner's Mental Challenges

2023-08-31
Summary:

Novice foreign exchange Investors must undergo several psychological tests in the market, requiring perseverance and patience.

For investors who are struggling in the foreign exchange market, there are several obstacles that must be experienced in foreign exchange speculation. If you do not have such experience, it indicates that your level of foreign exchange speculation is not good. These barriers are not technical analysis barriers or foreign exchange knowledge barriers, but specifically psychological barriers, which are commonly referred to as mentalities.


First hurdle: Can you keep an eye on the market every day and be short for a month? Even longer? The first hurdle is to hone patience. In the foreign exchange trading market, we need to learn to wait for opportunities. Short positions are also operations, and they are high-level operations, but they are also the most difficult to operate! Short positions are definitely the prerequisite for making big money. Short positions are the best way to avoid market value decline, because only being able to be in short positions can keep one's mind calm! The length of time you have been empty can tell a person's mentality.

Foreign exchange speculation is a process that requires perseverance and patience. The market will not always develop according to your expectations, and sometimes it takes a long time to see profits. When encountering setbacks, persist and follow your own plans and strategies.


The second hurdle is: when other currencies soar but your currency falls, do you feel lost? If you feel very lost, do you have the urge to exchange currency? On the contrary, while other currencies have plummeted, your currency has risen. Do you feel excited and have the idea of posting regardless of others' emotions? If you have both, it means you have a restless mindset and should pass the second hurdle. Do not rise with joy; do not fall with sorrow! Due to the timing of the main intervention in foreign exchange, there are naturally occurring cycles of activation. Historical data shows that during a major market, most foreign exchange gains are similar (excluding some super-bullish currencies). Therefore, as long as there is patience, opportunities can be said to be equal.


Third hurdle: If the exchange rate has already fallen below an important support line, do you have a lucky mentality? When foreign exchange rates continue to decline, will you expect them to rebound all the way? If all of these are present, then you still have a long way to go, and this third hurdle is also the biggest and most challenging hurdle that the vast majority of Hui people cannot pass. Break the line and leave! The main force will never allow their foreign exchange trading to break through randomly, so breaking through must be determined to leave the market as soon as possible.


These obstacles are essentially psychological warfare, as the volatility of the foreign exchange market is high and prices are constantly changing, which may cause emotional fluctuations such as anxiety, panic, excitement, etc. At this point, it is important to learn to remain calm and rational and not let emotions influence one's trading decisions.


In fact, there are many obstacles to playing games with people from all over the world in the foreign exchange market, but it is not because a little technology can defeat them. In the foreign exchange market, if you want to defeat yourself first, you can defeat others. A successful investor must complete five basic processes in foreign exchange investment: entering the foreign exchange market, understanding the foreign exchange market, adapting to the foreign exchange market, and finally controlling the foreign exchange market. Actually, these stages are all included in those three barriers. Only after we pass these barriers can we go further and further in the foreign exchange market.


Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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