Essential knowledge for beginners in foreign exchange

First of all, you have to understand the related terms of margin trading, their meanings, etc. Only by understanding the most basic knowledge can you proceed. Let me give you an example: what is spread, what are stop loss and take profit? What are the types of transaction prices, leverage ratios and other related basic terms to understand the principles of foreign exchange margin trading. This is the bottom line. This is the same as educating a child. First, you have to let him know the world so that he can grow up step by step. Next, you have to learn the use of foreign exchange technical indicators and which technical indicators to combine to accurately judge the market trend. Maybe everyone will say that technical indicators have no role. My personal opinion is that technical indicators are very important. The most commonly used technical indicators include stochastic indicators, multi-control indicators, Bollinger Bands, and moving average indicators, etc. The calculation and application methods of these indicators will be introduced one by one in the next section.
When learning these technical indicators, you need to understand the composition principles of technical indicators and master the application methods of indicators. However, you need to use them flexibly and cannot copy them mechanically, because technical indicators are lagging indicators. Everyone must understand a truth that history will repeat itself. Moreover, technical indicators sometimes deviate from the real market conditions.
These are things that you, as a novice, need to study slowly, and this process may be very long. The final test is your determination and perseverance. If you don't have this determination, then I can tell you directly that you can leave the foreign exchange market directly. This market is not suitable for you.
Friendly reminder from LeCroy International Platform
The third step is fundamental analysis and judgment. From the analysts I have seen, many of them are mainly technical, but the fundamentals are still relatively Few, because the foreign exchange market is a global market with huge data and very professional terminology. As a novice, you will definitely not have time to find out how the market will develop based on the data. You can remember some important data.
The other effects are not very big and can be dropped. Concepts such as gross national product, the impact of changes in national interest rates on the value of the country's currency, export data, non-farm employment data, housing starts, etc. Just like the stock market, good news will cause the market to rise, and bad news will cause the market to fall. Of course, the foreign exchange market is more transparent than the stock market. For explanations of terms related to fundamentals, please refer to the relevant sections.
The last thing is practice. Needless to say, everyone knows that talking on paper will never succeed. Only when you enter the battlefield can you truly summarize whether your learning is useful. Truth is found in practice. If you fail, you must find the reason for your failure.
If you are a complete novice, do a simulation first. Many people will say, I always make a profit when I do simulations. Why do I always lose money when I do a real account? I can tell you that simulation is different from real one. In addition to the difference between accounts, one is real money and the other is fake money, another difference is your mentality. You don’t care about the simulated position, it’s not real money anyway. Your foreign exchange speculation mentality is two completely different realms. Therefore, when we simulate, we should pay attention to place orders with light positions, avoid heavy positions, and develop the habit of setting stop losses. Adjust your mentality to a practical mentality and remember to keep a normal mind