What knowledge in the financial market is beyond the imagination of ordinary retail investors but is actually very important?

Thank you Dragon World for the invitation. In fact, I smelled a hint of "conspiracy theory" in this topic and the description of the subject.

Retail investors are commonly known as you and me in the market, who have little capital, nothing to rely on, and these people who trade purely on their own. In contrast, we believe that the large capital holders in the market are all members of institutions, and some people even believe that there are market makers in the market, who have incomparable resources for retail investors, and can even manipulate the market by virtue of their capital advantages to harvest Leek, or in other words, they can know some news and market conditions in advance.

If these ideas are deeply ingrained in the minds of retail investors, there will never be a possibility of profit, because every time you lose money, you will use this as a reason to think that someone deliberately harvested you, or obtained information in advance, which led you to think that the market is not fair. The actual situation is not like this at all. First of all, let’s talk about the large funds in the organization. The difference between this kind of people and you is the size of the funds. Others are almost the same. According to the current situation of platform operators, they can all do mini-lots, that is, 0.01 lots. Is there any difference between opening 0.01 for your 10,000-dollar account and opening one or two lots for someone else’s one-million-dollar account? If you have $10,000, you have to look at one or two hands. It is a defect that you can’t control the risk. It has nothing to do with the size of the capital. Similarly, if you are really given a million dollars, you will open dozens of hands. Such a person operates large funds. Accounts are a disaster.

Some people say that the entry and exit of large funds will affect the market. I do admit that some large funds suddenly enter and exit the market, and indeed a large k-line will be formed in the small cycle chart, but it is only limited to small cycles, at most five minutes The chart or the three-minute chart, and now the amount of funds in the foreign exchange market is getting larger and larger, all of which are in the trillion-level volume. I really want to have a little impact on the market. It is really useless without a few million dollars, but even if it is In this way, in the sun, it will also be digested without any ripples.

Some people think that someone can know the inside information in advance and harvest retail investors. This is a joke. I use non-agricultural or bank interest rate announcements as an example. Only 99.99999% of people in this world can know the news in advance. Why not 100%? Because those who formulate and release the news will know it in advance, and even the President of the United States cannot know it in advance. Will these makers leak it? No, although this news is worth a thousand dollars, leaking it will cause them to suffer catastrophe. For example, what will happen if the interest rate adjustment is leaked in advance? If the major banks know in advance, they will start to adjust in their own favor, and various funds will start shorting in advance. If you do more, adjusting the interest rate itself is to solve economic problems. Leaking ahead of time will lead to more economic deformities and serious social turmoil. Of course, those officials may be destroyed. Will they still leak?

Therefore, the reason why 90% of retail investors lose money is not here. The biggest problem with poor trading is that they do not have enough understanding of trading. For example, many people know about stop loss, but their understanding of stop loss will have a big deviation. Some people think that it is good to stop the loss in mind, I hold it first, and stop the loss manually when I reach the position. Some people think that the losses in transactions are all caused by stop losses, so stop losses are not added. There are still people who know that stop loss is very important and insist on stop loss, but repeated stop loss makes him very upset, he slaps his face left and right, and finally starts to break the can. Others embrace stop loss, thinking that stop loss prevents losses from expanding. Some people like stop loss, because he knows that the transaction is impossible to be 100% correct. If a stop loss occurs, it means that the error has been ruled out, which means that the correctness may not be far away, and he even feels that the stop loss order makes people happy. How about it? Just one stop loss has so many different feelings and cognitions, and there are many other details in the transaction. If you want to make a good transaction, you must first establish a trading system, then deal with the details, and finally execute consistently. These words are often heard by every retail investor, but how many people really understand?

Are you satisfied with this answer?

The first basic knowledge of foreign exchange speculation: attach great importance to the efficacy of performance indicators

In the foreign exchange market, the most common and most reasonable market analysis method is the analysis of technical indicators. There are many performance indicators, such as Bollinger Bands, K-line shape, MACD indicator value, RSI indicator value, etc. Investors are speculating in foreign exchange During the whole process, you will come across a lot of indicators, you just need to choose a few familiar and common indicators, and these indicators can be used to analyze market positions or send out trading signals.

The second basic knowledge of the introduction to foreign exchange speculation: pay attention to the fulcrum and resistance points

The fulcrum and resistance points refer to the price positioning points that appear continuously in the chart, such as upward and downward or economic downward. The fulcrum appears in the influence, and the resistance point appears in a large number. If the point is cut, the two will be converted into each other. For example, if the fulcrum becomes a downward trend after being overcome, the fulcrum may become a new resistance point. In the rising market period, after the resistance point is overcome and the upward trend continues, it will also become a fulcrum. Derived from this, there are many ways to analyze the foreign exchange market with the fulcrum and resistance point.

The third basic knowledge of the introduction to foreign exchange speculation: distinguishing the link of exchange rate fluctuations

The price fluctuation is divided into stages, which can be roughly divided into four stages, namely the bottom-building stage, rising stage, head-building stage and falling stage. When making market forecasts, investors must pay attention to this point, such as whether it is in a rising stage or a bottoming stage, etc. It is helpful for investors to choose accurate entry and exit points by identifying which stage it is in from the ups and downs .

Foreign exchange investment is not an easy technical job. From how to adjust the mentality to the analysis of technical indicators, all investors need to study and train before actual combat to explore the actual operation. They must not only have solid personal qualities, but also have sufficient financial resources. Basic theory of technical indicator analysis.