Take the trend as right and the contrarian as wrong.

Price changes have a certain trend, and it is not easy to form an upward trend or a downward trend. Once formed, it is difficult to change in a short time. Therefore, unless the market trend changes obviously, we must respect the trend!

Establishing an empty order at a high level when going up, or establishing multiple orders at a low level when going down, are all actions against the trend, and the consequences are often unimaginable. Because the trend is invincible, no force can stop it!

Trend is the essence of foreign exchange trading, and understanding the trend will give you the golden key to making money in the market. Follow the trend, you can avoid losses and gain benefits.

Content is right, greed is wrong.

Greed is the biggest enemy of profit, and contentment is the key to profit in foreign exchange trading.

Take light warehouse as right and heavy warehouse as wrong.

The foreign exchange margin system and the randomness of price fluctuations determine the importance of position control in trading, and light positions are generally more suitable, because once the positions are heavy, their mentality will also change, which will often affect normal decision-making and trading strategies, thus affecting the trading results.

Position control is the most basic and important link in foreign exchange trading. Some investment experts say: the real investment income rule is that the position affects attitude, attitude affects analysis, analysis affects decision, and decision affects income.

Treat objective operation as right and subjective analysis as wrong.

History has proved that there is too little time for personal subjective judgment to coincide with the actual market trend. The fundamental reason lies in limited resources, limited time, limited energy, limited funds and limited cognitive ability.

Since the subjective analysis method doesn't work, we have to rely on the objective operation method. But in practice, most investors are always troubled by the relationship between subjective and objective, and cannot operate objectively.

Objective analysis depends on clear rules. Whether subjective analysis and objective analysis are contradictory or not, we should strictly abide by objective laws.

Patience is right, impetuousness is wrong.

Foreign exchange trading is so exciting that traders must cultivate their patience, otherwise it will be difficult to succeed.

It is right to stop loss and win, but it is wrong to let it go.

Stop loss is a very important part of foreign exchange trading, because capital preservation is the first and making money is the second.

In fact, it is quite effective to establish a reasonable stop loss principle, and the core of a sound self-help strategy is not to let the loss continue to expand. On the contrary, due to the margin system of foreign exchange transactions, if the loss sheet is left unchecked, it may not only aggravate the loss, but also lead to short positions.

Stay in the green hills, not afraid of no firewood, the charm of stop loss is here!

It is right to be calm, but it is wrong to be swayed by considerations of gain and loss.

This is aimed at the attitude of traders towards losses or profits. Mature investors, whether losing money or making profits, should do whatever they want, which is better than walking around.

It is right to increase profits, but it is wrong to be overweight.

In the actual transaction, you should overweight the profitable positions, because the profitability of the positions shows that the price is developing in your favor, indicating that your current operation is correct, and you can start overweight according to the actual situation. If the price is unfavorable to you, you must exit safely under the protection of the first warehouse profit; If the price continues to develop in your favor, you can get more profits.

Jesse Livermore, a master speculator, has repeatedly stressed that it is inappropriate or even wrong to overweight the loss position. Because once there is a loss, something will happen. If you add more, it will be a big mistake, and it will often develop out of control.

In fact, the essence of trading is the confrontation between human nature and mentality. The vast majority of trading problems in the foreign exchange market stem from the body and mind. Between the market and people, the real difficulty is always people.