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What does foreign exchange pressure mean?
Foreign exchange pressure means that investors hold a large number of loss positions in the foreign exchange market and are unwilling to admit their mistakes or sell these positions. It is usually caused by poor emotional control and excessive fluctuations in foreign exchange prices in the short term. Foreign exchange pressure is a common mistake of investors in investment, and it is also one of the main reasons leading to large investment losses.

The main risk of foreign exchange pressure is that due to excessive price fluctuation, the position may suffer further losses, resulting in shrinking funds and even bankruptcy. In addition, foreign exchange pressure will also have a negative impact on investors' psychology, which will easily lead to decision-making mistakes and psychological distortions, and even lead to gambling addiction. For investors, foreign exchange pressure is extremely risky and must be treated with caution.

The most effective way to avoid foreign exchange pressure is to carry out reasonable risk control. Investors should make a reasonable investment plan and risk control plan according to their own actual situation when investing, and decisively close their positions and stop losses when the market trend is unfavorable. In addition, investors should pay attention to rational investment, avoid emotional interference, and avoid excessive pursuit of high returns or excessive risks. Only in this way can we build a safe and stable investment portfolio and avoid the negative impact of foreign exchange pressure.