Shuttling between the foreign exchange trading market, whether you are a mature trading expert or a foreign exchange trading beginner, learning to identify the foreign exchange platform determines whether the future trading road is smooth, and mastering some useful trading skills will have a certain impact on profits and losses. Today, Tianye Jun will talk with you about what are the essential skills you need to master as a qualified investment trader.

Trading mindset 1: Keep your head on your toes

The mentality of foreign exchange trading is really important, in addition to certain technical factors, good psychological factors can always play a very obvious role in trading and investment, such as keeping a clear mind. For many foreign exchange trading novices, very care about the loss of the initial trading, a little loss will be a mess, especially when there is a serious loss anyway, there is a "gambler" psychology, thinking that it is not as good as gambling.

The success or failure of trading can not be said to depend entirely on the mentality of traders, but to a large extent if there is no correct trading attitude, it will directly affect the possibility of profit. Therefore, as a foreign exchange trader, what you have to do is to straighten out your trading attitude, keep your head clear at all times, and not produce emotional fluctuations for trading profits. In addition to this, self-discipline is one of the important trading mindsets.

Trading mindset # 2: Be patient

As the saying goes, haste never cooks, and forex trading is an investment that requires patience. Whether it is choosing the appropriate opportunity to enter and leave the market, or waiting for the right time to trade, it requires the patience of the trader. Another macro point, as a trader novice can not suddenly become a foreign exchange trading master, in this process to continue to accumulate experience, improve their trading skills, with the accumulation of time will really grow, and these are the need for patience to complete.

Trading mentality three: Keep a normal heart

On the road to growth, it is also important to maintain a normal heart. Where is the normal heart? It's learning to accept losses. If you want to become a mature forex trader, the first thing you need to do is to not be afraid of losing money and accept it.

When the investment market is bleak, many traders are not willing to check their accounts, afraid of seeing their losses, and would rather wait until the market stops falling and rises before they are willing to look at the account, and the final result is not as expected by traders, assets are shrinking again and again. This is what we often call the "ostrich strategy."

When a successful trader is faced with his own losses, he thinks it is normal. Trading is nothing but losses and gains, which are always faced in forex investment. If you want to make real money, you must accept your failures, rather than running away from your failures, which will never succeed.

Rather than losing money, the most important thing is to develop trading skills and accumulate more trading experience.

Trading Practice # 1: Learn to plan

After saying the skills of trading mentality, Tianye Jun will talk about the practical operation that should be done in the trading process. Investment is not a simple thing, just like some people want to lose weight need to make a series of plans to get twice the result with half the effort, the same for foreign exchange investment, we have to make more detailed trading plans in advance.

Before trading investments, plan your trading plan in advance and have a clear process in mind, including recording how you enter and leave the market, how often, and analyzing the profit and loss ratio that each currency can bring. This is a much safer process than an improvised idea.

Trading practice two: Risk management

Before trading, it is necessary to do the risk control of the foreign exchange trading platform, and in the trading, it is necessary to do enough risk control for all possible losses, so as to control the losses within the range of their own ability to bear.

Speaking of risk management, let's start with the concept of prospect theory. As one of the four major research achievements in behavioral finance, prospect theory holds that people usually do not think in terms of wealth, but in terms of wins and losses, and are more concerned about the amount of gains and losses.

This theory leads to four basic conclusions: A. Most people are risk averse when faced with profit (certainty effect) B. Most people are risk-averse when faced with losses (reflex effect) C. Most people's judgments of gains and losses are often determined by reference points (reference dependence) D. Most people are more sensitive to losses than gains (loss effect)

Why mention prospect theory? From these four basic conclusions, we can see that people are unwilling to take risks when faced with profit. Instead, in the face of loss, everyone becomes a risk taker. The pain of loss is more sensitive than the joy of gain. Therefore, it is really important to do a good job of risk management, so the two steps of capital withdrawal should be small and the fixed loss value should not be less.

Trading practice 3: Prepare before and after

Forex trading is tied to "world events", and for many traders, it is more prudent to wait until after the release of economic reports, so it is also important to keep an eye on "world events".

Some traders have the habit of keeping a trading diary after the end of the trade, so is the trading diary important? In fact, through the trading diary, we can reflect on the mistakes made in the previous trading, and even write a trading diary can be specific to all the details of the transaction, and can also analyze and review in the future to learn from the experience.

Sum up

The techniques summarized by Tianye Jun today may not be completely useful for every investor, because the truly successful trading techniques are really useful for themselves. As a novice trader, what you need to do is not to find skills directly, but to expand your trading knowledge, keep an eye on the world, accumulate long-term trading experience and learn to record and resume every transaction, and finally forex trading will be naturally handy for you.