Excessive leverage: Although the currency may fluctuate, violent fluctuations are not common.
2. Asymmetry of risk and return: Experienced foreign exchange traders keep their losses within a small range and offset them with profits when the price trend is favorable.
3. Platform or system failure: Imagine that if you have a large position, you can't close the position due to platform failure or system failure. These failures may be power failure, Internet overload or computer crash, and also include abnormal fluctuation periods, such as stop loss and other order failures.
4. Exchange rate fluctuation: High leverage ratio means that when the exchange rate fluctuates abnormally, trading funds may be quickly exhausted.
5. Characteristics of OTC market: The foreign exchange market is an OTC market, unlike the centralized and regulated futures market. This means that foreign exchange transactions are not guaranteed by clearing institutions, which increases the risk of counterparties.
6. Fraud and market manipulation: there are occasional frauds in the foreign exchange market. The market manipulation of foreign exchange interest rates is also rampant, and some of the biggest participants are also involved.
7. High handling fee+spread+overnight fee+slippage. (ATFX has zero handling fee, low price difference and high platform stability) Click to learn.
8. A lot of transactions.
9. I heard the so-called teacher Bill doing the data market wrong.
10. No stop loss.
First, stop loss must be set and strictly stopped after placing an order.
Second, the order is in the wrong direction, strictly stop the loss, and the small loss is not terrible, as long as it is not a big loss.
Third, the stop loss moves up correctly in the order direction, and the stop loss moves up beyond the original order position, even if the stop loss is swept, it is profitable.
Fourth, keep a good attitude, don't take orders, you can't control the market, and taking orders often leads to short positions.
5. Don't listen to any analysts and don't lock positions. Locking the warehouse is equal to chronic suicide. Lock the position (when the order is in the wrong direction, such as trading more than one order, looking at the loss, and then entering the empty order, this is the lock position, and the apparent loss does not increase. )