Fairness in Forex Investing

Why is Forex trading fair? Why is Forex trading free? How much leverage? Why do you need to look back at your trading records? How to control the number of operations? How to stop losses and increase positions?

Forex trading is fair. Whatever you pursue is what you get in the end.

Here are some details that may be helpful to you (all based on the EUR/USD currency pair).

①Freedom

Forex trading is so free. You can buy anytime you want and sell anytime you want. A good platform is very reliable and there are no restrictions. For individual investors, no matter how much money you invest, the transaction can be completed in one minute, with very little slippage (handling fees, spreads).

An environment that is too free requires you to have a clear motive. The motive of making money is only superficial and just makes you feel good.

In an environment of absolute freedom, the cage of the outside world disappears. Life is born free, but it is always in shackles.

Therefore, please draw a circle around yourself and stay in the circle honestly. If this circle is drawn with blood and is a mark engraved on your heart, then you do not need slogans such as "Self-discipline is free" to motivate yourself.

②Leverage

What we are talking about here is the actual leverage used, which is the leverage set by the trading platform for you, such as 100, multiplied by the ratio you use for each transaction, such as 1/25.

Even if you can make a lot of money at the beginning with high leverage, once you have accumulated money, you will never dare to invest most of the money. I want to go a long way on the road of investment. I am not interested in any behavior that is ineffective in the long term. I don’t envy you if you make 10 times a month or 100 times a year.

③Pursue

The same conditions, the same environment, the same starting point, but with different pursuits, the curves of life will soon diverge.

In the end, it was as if they had never met at a certain point. I hope that seeing you here, you can put down what you are doing, spend more time, and find your true pursuit. Everyone is different, look for it. It is your unfinished karma and the evil in your life. No matter how much energy and time you spend looking for it, it is worth it.

④Transaction records

In the trading industry, the only language is transaction records.

Always remember that if your trading career is important to you and you really want to take root here, rather than just wash your hands after this round, please always look at your trading record and learn from it. It is your best mentor. Your trading record defines who you are.

You may not know yourself well. If you want to understand yourself, just look at the transaction records. Reviews can be done frequently or at intervals, but the words written in the review are really not important. What is important is the feelings gained when looking at your own transaction records. You will have a clearer understanding of who you are and where you are walking now. Only by knowing your past can you not be trapped by the present.

⑤Theory

You have to find your own theory, and this theory cannot be pieced together from various books.

If you have read a lot of books about "trading", don't continue to indulge in them. You still need to walk your own path over and over again. Draw more pictures on paper, and you will definitely gain something over time.

We humans are really fragile in the maze of language. Words can make money, words can save people, and words can also kill people, making people crazy and lost. mutual encouragement.

⑥Do not operate if necessary

The operation process must be simple.

Under the premise of ensuring reasonable returns, do not increase the number of operations if necessary. You have already thought about which trend to take. Do not increase unnecessary buying, unnecessary selling, or unnecessary fleeing.

The principle of minimum number of operations can allow you to avoid many mistakes, so that the success rate of your operations will be much higher. The success rate is very important. It not only ensures that you get a reasonable return, but also prevents you from being in a hurry, wanting to make up for the loss after a loss, or wanting to leave immediately after winning money. More importantly, it will make you patient, and patience can slowly accumulate your own intuition about graphics.

This kind of intuition and patience are very precious, so don’t lose the big for the small. And if you operate it frequently, it seems that you can "maximize profits", but this thing definitely looks beautiful, but it is full of poison inside. This is the difference between theory and practice. The principle of "profit maximization" must not be adhered to, but "operation minimization".

⑦ Stop loss and increase position

Don’t make stop loss too complicated. I have tried many messy methods. Most of the logic is that if situation A occurs, the stop loss plan will be changed to B. It looks high-end, but it only looks like it. It is messy to use, and messy is a very bad state, because at most you only get money, and it is a one-time thing.

But you haven’t gotten the intuition and patience for graphics, which are valuable in a lifetime. It is recommended that the stop loss setting should simply set a fixed ratio based on your own operating cycle and the range you can bear.

Don’t add to your position. How much to buy and how much to sell is determined. A transaction or sale is a closed circle that must be completed symmetrically.

Don’t buy and sell at the same time. The operating cycle is asymmetrical, the quantity is asymmetrical, and even the principle of entry and exit is asymmetrical.

Because of this, you will run out early and already have a lot of room for profit. However, because you continue to add positions, you will be afraid of the trend no matter where it adjusts.

Because the profit margin has been compressed by your increase in position, you are always on tenterhooks. That's why you're impatient. In Forex investment, few people do long-term investment. Basically, a complete operation cycle lasts about a month. If it is less than two months, do not increase your position. In such a short period of time, you can't bear to wait for it to end. If you make a little profit, you will think about adding positions all day long.

Most of the time, the reason given is still: if the market proves you are right, you should dare to increase your position and obtain excess returns.

You are really not proven right by the market, you just make a profit at that moment, the result of addition and subtraction.

It's that simple. What you call "right" can be "wrong" at any time in the Forex market, and the Forex market is not interested in proving whether you are right or wrong.

When you are ready to enter the Forex market, you must choose an excellent Forex platform!

The Forex market is a global market, and everyone invests in a relatively fair environment. Forex transactions can be bought and sold at any time, freely traded, without time and location restrictions. Use leverage, don't gamble. Frequently looking at transaction records is a review of your investment learning and helps you understand yourself better. Do not increase the number of transactions unless necessary. The stop loss setting should be simple and based on your own tolerance, and do not rush to add positions.