The psychological misconceptions of investing in the currency market
1, bl Eastforexcashbackdly follow the trend - one of the psychological misconceptions of the East forex cashback cashback forex passive by many complex factors, including the influence of the followers of the psychology of the currency market has a great impact on the investors who have this psychology, see others have bought a certain currency, but also deeply afraid of lagging behind, without underst cashbackforexbtcing the situation, also buy a currency they do forexcashbackcalculator understand sometimes see others selling a certain home Sometimes the rumor mill is in full swing, due to the herd mentality (follow the herd mentality), resulting in waves in the currency market, once the group follow the herd to sell, the market imbalance between supply and demand, supply exceeds demand, and the currency market is in the dumps so often on those who make waves in the currency market with bad intentions, often swallowed by these people Therefore, investors should establish their own sense of buying and selling a certain currency, not to follow the will of others 2, indecisive - psychological misconceptions of the second with this investment psychology of investors, before buying and selling a certain currency, originally developed a plan to consider a good investment strategy, but when influenced by the herd mentality of others, step into a currency market, often can not form a good portfolio of securities, a For example, the investor has already found that the price of a currency in his hands is high and it is the right time to sell a currency, and he has also made a decision to sell a currency, but when he hears comments from others that are different from his own, his decision to sell a currency changes immediately and he gives up a good opportunity to sell a currency. In the same way, when the investor sees that the price of a currency is low and it is the right time to buy it, he makes the decision to take advantage of the low price. There is also a situation in which the investor does not intend to enter a currency market, but when he sees that many people have entered the market, he can not help but feel itchy, and can not resist the temptation of the atmosphere, thus making a not very sensible investment decision. Sometimes, the failure of investors is due to excessive greed caused by the favorable are going to be, inch not to let a certain currency market this kind of greedy speculators, is not uncommon they do not want to control, and can not control their greed whenever a currency price rises, always refuse to decisively throw their hands held by a currency, always encourage themselves in the heart: must persist until the last moment of victory, do not give up there More opportunities for profit! This often gives up an opportunity to sell a currency. Whenever the price of a currency falls, they are hesitant to buy it, always hoping that the price of the currency will fall again. They only think of high risk in high return, and rarely think of high return in high risk Therefore, the following maxim can be identified: short, long can make money, only greed can not earn so advise you not to be greedy, do not always envy the luck of others, should believe in analysis, believe in their own business, economic situation and the general trend of judgment and decisive action on the U.S. currency market also has a famous saying: long and short can be in Wall Street Securities market to make a fortune, only insatiable people are the exception 4, the currency market as a casino - psychological misconceptions of the fourth with a gambling mentality of the currency market investors, always hope to make a fortune they can not wait to catch a or a few of a certain currency, so that they a million dollars, they once in the currency market investment profits, most of them will be the victory of the mind, like a gambling stick as often as possible to raise the bet, can not wait to bet their lives to the When the currency market losses, they often do not hesitate to backwater, all the funds invested in a currency, such people mostly end up with a family loss, so the market is not a casino, do not gamble, do not faint, to analyze the risks, the establishment of investment plans, especially the gambling behavior of people buying and selling a currency must first establish the proportion of investment funds 5, special pick bargains - Psychological misconception of the fifth high price into the market will of course bring undesirable consequences to investors, but single-mindedly want to enter the low price of flat shares, sometimes do not necessarily have good returns cheap things, often not good goods, of course, there are exceptions in a certain currency market, there are many investors hold this suspicion of expensive greedy flat psychology, only to think about buying some cheap price of a certain currency, and do not consider buying those prices will be significantly The result of this investment is that the risk and return are proportional to each other, and the result is that the currency they hold in their hands often becomes an eternal loss of capital 6. For example, when the price of a certain currency continues to fall, it is decided in advance to buy it immediately, but once the market, the crowd is selling, he bought a certain currency hand and retracted also some people have no plans to buy a certain currency, but when the crowd snapped up, he could not resist the temptation. When the trend up) is not worth buying should be cheaper before you can enter the market So, the more you wait the higher the price, the more you wait the more afraid to enter the market The result is that the currency price has doubled several times, but he waited for nothing the whole process of wrong analysis of the situation and miss the time to buy and sell, these two mistakes are closely related is due to the wrong estimate of the situation, investors often miss the opportunity to sit political, economic changes in the situation and the results of business operations will often give the currency market Therefore, when investing in the currency market, not just pay attention to the dynamics of the currency market, but also pay close attention to the local and international political and economic situation and business results of the movement of the situation and the technical analysis of the currency price trend combined so as to capture the buy or sell signal in time to make the buy when to buy, the sell when to sell the actual action 7, dare to lose and dare not win - psychological misconceptions of the seventh Please remember that Many investors buy a currency, buy a period of time after the rise, they can not wait to sell out for profit they believe that only the money in the pocket is safe but they ignore the reasonable value of a currency in general, the market price of a currency does not necessarily reflect the true value of a currency so some investors sell a currency, the currency price The price of a currency continues to rise after selling, and often the price rises even more than it did before selling, especially the original currency, according to the general international practice will also rise several times, so you can not just see the good, see the rise and sell, to make the decision to sell based on the P/E ratio. Many people invest in a certain currency, often earn very limited, etched but very much one of the important reasons is afraid to win the psychology at play 8, unnecessary panic - psychological misconceptions of the eighth Some investors in a certain currency by some environmental factors and road news, the currency market or the future of a certain currency to lose confidence, panic, and so on Desperately selling hands of a currency many experience in the currency market shows that unnecessary panic is often a false alarm of course occurs in extraordinary times (such as war, economic crisis, etc.) seems to be justified, but in general, many selling wind is often deliberately set off by some large investors or others who put out unfavorable news, caused by selling the purpose is to depress the price of the currency and then take the opportunity to buy, or cash to transfer funds The general investors, if unnecessary panic, a large number of hands to sell a currency holdings, will certainly suffer losses, so as investors, to remain calm in the face of unfavorable news, carefully analyze the reliability of the news if it proves to be true, but also to see the impact of such news is permanent, or temporary, if the latter, there is no need to sell a currency in hand 9, indifference --Some investors buy a certain currency, they do not care, listen to its natural development sometimes even entrusted to their friends and relatives or broker manipulation, they rarely involved in this practice in the case of the currency market in the big trend, but also can make some money, if it is in the downtrend, will certainly be lost. The key is to trust yourself, to have your own judgment, your own commission requirements 10, not afraid to lose - psychological misconceptions of the ten in a competitive, risky currency market, there is neither a general who always wins, nor a soldier who always loses The key is to take a flexible response strategy when the currency market trend down or the company suffers losses, and do not be entangled in losses, but should be decisive, and painful to cut some investors always have the psychology of not daring to lose, when the price of a currency rose, earned the difference, gleeful once the price of the currency fell, always hope that it will soon rise, without any analysis of the general trend of a currency and the companys business conditions and performance, some also based on In fact, this is only self-deception, and in the end it is you who suffer.