What is the essence of foreign exchange trading? I think this is a question that every trader who participates in foreign exchange needs to make a clear answer. I personally think that the true meaning of foreign exchange trading is: use small things to make big gains. The "big gain with small" mentioned here does not refer to the leverage effect of margin that we usually talk about, but the question of "how to use smaller losses to fight for larger profits" in foreign exchange trading.
Speculation is synonymous with small and big, and speculation can be divided into broad and narrow senses. Speculation in a broad sense is implemented in all aspects of our lives, not only in the foreign exchange market. There is also speculation in the spot market, and even the survival process of a life is a process of speculation. Let us define speculation only from the perspective of money possession. That is: seize the opportunity and invest in order to obtain a return of several times the investment.
The purpose of speculation is very clear, which is to make money. In the current market economy, as long as there is no neurological problem, almost 100% of people want to make money. Think about it, work hard, but the fact is that some people did make money, while others lost money.
Objectively speaking, this is a very normal thing. The People's Bank of China only prints so many banknotes. Let's analyze carefully, how do people who make money make money? Is it a gift from God? How do people who lose money lose money? Is it God's punishment? I don't think so, in fact the reason is very simple: most people who lose money have not learned how to use small things to make big gains.
Is it still necessary to learn from small to large? someone asked in surprise. Yes, it needs to be learned. In real life, many people don’t have this awareness at all. Some people realize that they just can’t do “small things” and “pay small things” means to “pay small things”. But even if it’s “small things”, many people still don’t want to Pay, if you don't pay, you want to be great.
The world is so big that I haven't heard of the pie dropping! This is simply impossible. The most important thing for the success of a few people is to learn to "use the small", so in this sense, there are two types of people in life.
One type of people is called the "great wisdom and foolishness" type. This kind of person is suddenly magnanimous, far-sighted, and doesn't care about small profits. Sometimes, when necessary, they donate "small profits" and sacrifice their own small interests. Therefore, daily losses are inevitable. Indeed, they are not very "smart" and a bit stupid. But they succeeded in the end, so-called "great wisdom"!
One type of people is called the "big foolish as wise" type. This kind of person is short-sighted, short-sighted, caressing about every detail, has no clear goal of struggle, and when his own interests are violated, he will stare and show hatred, so it is impossible to suffer in daily life. He is often complacent, happy, and thinks he is smart, but in fact he is so stupid that it is difficult to become a great tool, and he is mediocre, and has passed his life in a hurry! The process of trading in foreign exchange itself is a process of human nature cultivation.
What is the relationship between technology, principles, and human nature in trading? In my opinion, technology solves the problem of "how to do it"; principles solve the problem of "what to do if you make a mistake"; and human nature solves the problem of whether the principle can be truly implemented!
Therefore, human nature is the key to the success or failure of foreign exchange trading, and it is the root. No matter how good a trader is, it is impossible to predict the market with 100% accuracy. What should I do? Relying on principles to make up for the lack of technology, but no matter how complete a trader's principles are, if they are not strictly implemented in transactions, they are useless and meaningless. Why are there situations where some principles cannot be implemented? This is a question of human nature.
People who have been engaged in foreign exchange trading practice have a common experience, that is, "talking on paper" and "real swords and guns" are two different things. Looking at the market when not trading often has a higher accuracy rate, feels good about yourself, and has a good attitude. Why? Because winning or losing has nothing to do with you. And what about the real deal? The other side of human nature is exposed, that is, the thought of "wanting to win and afraid of losing" fills people's minds. Therefore, the plans formulated in advance and the principles formulated in advance have long been thrown out of the sky. As a result, they often make small money, lose big money, and eventually lead to failure.
It can be seen from this that human nature plays a key role in determining the success or failure of a transaction. If foreign exchange trading is regarded as a war, technology is tactics, principles are strategies, and human nature is responsible for melting principles into tactics, so as to win the whole war.
If technology is regarded as water, the principle is the container, and human nature is responsible for filling the water in the container so that it will not flood and become invisible, but there are rules and regulations.
If technology is regarded as a kind of religious belief, principles are ruthless laws, and human nature is the executor of laws. When religious beliefs are in crisis, laws are used to ruthlessly regulate human behavior.
If technology is regarded as a treasured sword, it should be a double-edged sword. It can kill the enemy if it is used properly, but it may cause self-harm when it is used improperly. The principle is armor and protective clothing. Only by attacking on the basis of good defense can we be invincible and have no worries. Therefore, human nature is responsible for putting on the armor before the sword is unsheathed, and then go into battle. During the Three Kingdoms period, Cao Cao had a staff general named Xu Chu who was capable of killing sex, and went into battle with bare hands, but was shot by an arrow, just as Mr. Lu Xun said, "he deserves it".
It can be seen that the three sufficient and necessary conditions for a successful trader are the combination of technology, principles and human nature. The three are indispensable and inseparable. A principle without technology is an empty principle, a technology without principles is a blind technology, and a transaction with insufficient human nature will be a failed transaction. In the final analysis, a failed transaction is a problem with human nature, so mature human nature, complete principles, rigorous Only when the three are successfully condensed can we realize the true meaning of small and big!
Add
