What is the real reason for the profit and loss of foreign exchange transactions?

In foreign exchange transactions, some people succeed and some people fail. Winners have the same reasons for success, while losers have different reasons for failure. There are many factors that lead to the failure of foreign exchange trading, but how should investors avoid these factors? . The following are common and easy-to-occur 14 major mistakes in foreign exchange transactions: 1. No detailed trading plan is made before trading: No detailed action plan is made before trading, and traders have no clear and specific understanding of when and where to quit trading, how much they can lose or how much they can earn. 2. Improper selection of trading varieties or improper fund management: You don't need huge investment to succeed in the foreign exchange market. The data shows that traders with capital accounts below $5,000 are more likely to succeed in foreign exchange transactions, but customers with capital accounts above $50,000 are more likely to fail in desperate transactions. 3. Expectations are too high and too hasty: If traders expect to be able to leave their basic work at the initial stage and rely on a few very successful transactions to soar, the cruel reality will usually crush their wishes. In all research fields, success requires hard work, extraordinary perseverance and talent, and foreign exchange trading is no exception. 4. No stop-loss measures: The use of stop-loss measures in foreign exchange transactions can ensure that investors clearly control the risk limit of funds in specific transactions and confirm the loss status of transactions. Remember, there is no perfect method for foreign exchange trading. 5. Lack of patience and principle: all failed transactions have the same characteristics, and the importance of patience and principle to successful transactions has almost become a cliche in foreign exchange transactions. Don't trade for the sake of trading, and don't trade for the sake of change-wait patiently for the perfect trading opportunity, act cautiously, and seize the opportunity to make profits-the market is the market, and no one can replace it or force it. 6. Go against the trend or try to be extreme: human nature likes to buy low and sell high or sell high and buy low. Investors trying to find the top and bottom often go against the trend, making buying high and selling low a harmful habit. 7, stubborn, against the market: most successful traders will not stay in the loss position for too long, nor will they spend too much money. Investors who stay in the loss position for a long time and hope to turn losses into profits in an instant are often doomed to failure. 8. Too high trading frequency: It is also a mistake to conduct multiple transactions at the same time, especially when there is a large-scale loss. A successful foreign exchange trader needs to concentrate and remain sensitive. It is absolutely wrong to do too many things at the same time. 9. Don't blame yourself and others: When you make a loss-making transaction or lose money continuously, don't blame your broker or others. You are the one who decides whether your transaction is successful or not. 10. Incomplete market analysis-both technically and fundamentally: short-term market trends are understood through daily charts, but long-term weekly and monthly charts of the same market can provide completely different observation angles. When planning a transaction, we need to carefully get a more comprehensive perspective from the long-term trend chart. Fundamentally speaking, observing long-term trends can also ensure that you have a more comprehensive understanding of what is happening in the market. 1 1. If you don't abide by the pre-established trading rules, you will lose big and make small profits. Many investors did not set up an attack and defense plan at the beginning of entering the market, which is the biggest incentive for the ultimate failure of foreign exchange transactions. 12, trading speculative commodities is a common mistake. If you are not sure, don't do foreign exchange trading. This is the most basic trading skill, but many people stumble over this question more than once a day. 13, foreign exchange traders often judge according to some information they have: the continuous deterioration of the market is only a short-term process and will only lead to huge losses. 14, arrogance. Once profitable, abandon the original operating theory and blindly make orders. Take it for granted, don't respect the market. This kind of foreign exchange trading mentality or thought is the most dangerous, investors can't operate according to their own ideas, because the market exists objectively, and dealing with the objective market with subjective thinking is bound to fail. Mr. Pei Zhongneng