Why are there more and more people speculating in foreign exchange?
Foreign exchange is an inexhaustible gold mine, and the winners of foreign exchange speculation are always a few rich, skilled and experienced people. Win or lose, foreign exchange transactions come from the whole international market, which is relatively fair, open and transparent compared with stock market transactions, because no one can manipulate such a huge international market. In fact, the real trading market is a hedge between foreign exchange speculators, because the foreign exchange speculation market itself is zero-sum. I paid for what you earned, and you paid for what I earned. You can't make extra money for no reason. Only through technical analysis and mutual game can we make a profit.
People who speculate in foreign exchange take out a small amount of funds and control a large amount of funds to speculate in foreign exchange transactions according to the principle of leverage, which can make small bets. The foreign exchange market is 24 hours, which is suitable for part-time and amateur foreign exchange speculation. In this way, you can win more profits with less money, but the loss can also double your loss. Of course, it should be noted that risks and benefits are equal, and how many benefits in the transaction may face the same loss, which is also an important risk of foreign exchange margin trading.
What kind of people are suitable for speculating in foreign exchange?
1. People with strong risk awareness
The foreign exchange market is a typical risk market. When entering the foreign exchange market, what I have heard for the longest time is that investment is risky and you need to be cautious when entering the market. But most people regard it as a joke and think that it is just preaching. People who speculate in foreign exchange need to have a strong sense of risk.
2. A studious person
The foreign exchange market needs a lot of knowledge, such as the basic trading foundation, trading methods, the essence of advanced trading, the highest level of trading and so on. These are all people who want to speculate in foreign exchange constantly learning and exploring. Because there will never be an invincible holy grail in the foreign exchange market, no one can guarantee to make money in this market forever.
3. People with high psychological endurance
Loss is a compulsory course to enter the foreign exchange market. No one in the stock market does not lose money, and the loss is the norm. Therefore, people who speculate in foreign exchange must have strong psychological endurance to survive.
4. People with high self-control
It is precisely because of the leverage of foreign exchange that the loss of every price fluctuation is amplified. If the stock does not stop loss, it will not lose all, and it may turn over its capital or even make a profit in a few years. However, if the foreign exchange does not stop loss, the funds are likely to return to zero or even become negative. Therefore, foreign exchange trading pays more attention to self-restraint, and people who speculate in foreign exchange need to have strong self-restraint ability.