How do you lose money in the currency circle!
In this issue, let’s talk to you about how you lose money in the currency circle.
The currency circle is a trading market full of possibilities
Compared with traditional stocks, funds, and futures markets
There is no supervision in the currency circle, no price limit, and no trading time limit.
You can buy and sell at any time, day or night, weekends or holidays.
If you are lucky, you will encounter a coin that will increase by 100% in one day.
Those with better luck will encounter coins that can increase 50 times or 100 times in a month or two.
A bicycle can be directly transformed into a motorcycle, so it is very easy to create the myth of wealth in the currency market.
Of course, the higher the returns, the greater the accompanying risks and temptations.
It is estimated that many people who are new to the currency circle have heard from their friends how much money they have made.
I feel itchy and want to come in and make a fortune. Get to know this circle.
But things went against expectations. Various media platforms on the Internet, as long as currency speculation and currency circles are mentioned,
Most netizens always say: loss, debt, bankruptcy, harming others
As you can imagine, most people lose money.
So why is it so difficult for ordinary people to make money in this market, and why are the majority losing money?
Today I will briefly summarize
First of all, the price of each coin comes from the value, and the value comes from people’s consensus.
When everyone is speculating on this currency, then this currency will definitely rise.
On the contrary, if everyone loses confidence in this currency, then there will be a large amount of selling, and the currency price will naturally fall.
The currency circle is a place where it is very easy to follow the trend. Buy when it rises and sell when it falls.
In the currency circle, the impact of news is far greater than that of technology.
For example, last year’s 519 plunge was due to GJ’s crackdown on virtual currency mining and the closure of all domestic mines.
It triggered a panic in the market and caused the currency price to drop by 40%+.
For example, this year's LUNA incident was caused by the decoupling from UDT and no longer an anchor relationship.
Triggering a massive sell-off of LUNA in the market, causing it to fall directly into scrap
So every time there is a sharp rise or fall, it is because of such a big event.
When speculating on currencies, you must pay attention to these market news.
Otherwise, I don’t know what causes the rise or fall, and it is easy to be cut off.
Maybe you think that when the currency price rises in the market, it is better to follow the buying trend and when the currency price falls, it is better to follow the buying trend.
Of course you can make money by doing this, but most people can't do it, and even if they do, they can't make a profit.
The trading mentality of currency speculators is mostly: trading against the trend
What is contrarian trading?
That means buying the top when it goes up, going short, buying the bottom when it goes down, and going long.
I think it won’t continue to rise, or it won’t continue to fall.
So if you want to ask him why he operates like this, he will tell you: I feel that it will not rise or fall.
Trading is all about feeling!
Even if the direction is correct, if you see a small profit, you will not be able to hold on, fearing that the profit will disappear, and you will be anxious to close your position and leave the market.
If the direction is wrongly judged, it will be imagined that the market will pull back and it will be difficult to cut the flesh. With this illusion, you will always resist the order.
As a result, I couldn't bear the resistance anymore, so I had to forcefully close the position. If I lost, I would lose a big watermelon. If I made a profit, I would only make a small sesame seed.
This is also the main reason for losing money in currency speculation. I believe this is the case for most people.
Moreover, there are big bookmakers and big institutions in this market, and they can completely control the market direction.
Even if you really operate with the trend, the market rises, and you buy when the price rises, there will still be operational risks.
Because you are very likely to buy it on the ceiling and thus be covered
So friends who are speculating in currencies, if you want to make money, I would like to give you some advice.
1. The multiple of the contract should not be too high, preferably within 10 times.
2. The trading position should not be too heavy, and the profit and loss will not affect the mentality of the next transaction.
3. You must have a trading plan in mind, think carefully before trading, expect profits and losses, and leave the market at the right time regardless of loss or loss.
4. Don’t enter the market based on your feelings. It is best to choose the entry point based on indicators.
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