When an investor first enters the forex market, due to unfamiliarity with the market, each investor chooses a different angle of entry. They may be influenced by different schools of thought, such as value investing, fundamental analysis, day trading or technical analysis. After communicating with a large number of investors, the following 6 stages are obtained.
Most investors enter the market because of the temptation of interests, with strong self-confidence, and usually end up losing money.
After experiencing initial losses, investors begin to take the market seriously and learn and study a lot of trading knowledge, including:
- Fundamental analysis, technical analysis, fund management, etc.
- Read a lot of books, study the market, and even work as a broker or analyst to accumulate experience.
After a lot of knowledge accumulation and trading experience, investors begin to realize that:
- Simple strategies are often more effective.
- Trend following is more useful than complex entry methods.
Traders begin to build a systematic trading method:
- Integrate complex information into systematic entry and exit rules.
- Develop multiple systems, keep exploring, and find a system that suits you.
Traders understand:
- The entry method is based on trial and error.
- Exit is to cut losses and let profits run.
- Fund management is to control risks.
Traders who can run a trading system for a long time and stably have firm trust in their trading system and calmly face market temptations and long-term unfavorable conditions.
Successful trading = trading psychology * fund management * trading rules.
If you are still struggling with foreign exchange trading and don't know how to form your own trading system, join the community and you will find a way to make money that suits you.
Community entrance: https://t.me/jrfxasia2024
Newbie welfare entrance: https://www.jrfx.com/2024/april/en/?396
Stage 1: Ignorance
Most investors enter the market because of the temptation of interests, with strong self-confidence, and usually end up losing money.
Stage 2: Accumulation
After experiencing initial losses, investors begin to take the market seriously and learn and study a lot of trading knowledge, including:
- Fundamental analysis, technical analysis, fund management, etc.
- Read a lot of books, study the market, and even work as a broker or analyst to accumulate experience.
Stage 3: Breakthrough
After a lot of knowledge accumulation and trading experience, investors begin to realize that:
- Simple strategies are often more effective.
- Trend following is more useful than complex entry methods.
Stage 4: System
Traders begin to build a systematic trading method:
- Integrate complex information into systematic entry and exit rules.
- Develop multiple systems, keep exploring, and find a system that suits you.
Stage 5: Cognitive Breakthrough
Traders understand:
- The entry method is based on trial and error.
- Exit is to cut losses and let profits run.
- Fund management is to control risks.
Stage 6: Faith
Traders who can run a trading system for a long time and stably have firm trust in their trading system and calmly face market temptations and long-term unfavorable conditions.
Successful trading = trading psychology * fund management * trading rules.
If you are still struggling with foreign exchange trading and don't know how to form your own trading system, join the community and you will find a way to make money that suits you.
Community entrance: https://t.me/jrfxasia2024
Newbie welfare entrance: https://www.jrfx.com/2024/april/en/?396
