Stop speculation how the exchange rate?

Stop the need for foreign exchange speculation

Volatility and unpredictability of the most fundamental characteristics of the market, which is the basis of market exists, but also the causes of the risk of the transaction, which is an immutable characteristic. Transaction never certainty, all the analysis and forecast is only a possibility, according to the transactions carried out such a possibility is naturally uncertain, uncertain act must have to have measures to control the expansion of its risk, stop-loss Thus came into being.

Stop-loss of human naturally occurring in the transaction process, not intentionally produced for investors to protect their own kind of instinct, the market uncertainty created the need for the existence and importance of stop-loss. Successful investors may have their own different ways of trading, but stop it is to protect the Yi are the common features of success. World Investment Master George Soros said the investment itself has no risk of loss of control have the risk of the investment. Society Stop, Do not fall in love and loss. Stop-loss than a profit important, because any time the capital preservation is the first one, the profit of the second place, a reasonable stop-loss principle quite effective and prudent principle lies stop to prevent a loss continued to widen.

Why is so difficult to stop currency speculation

To understand the meaning of stop-loss is important, however, this is not the final result. In fact, investors did not set the stop loss abounds with examples of the implementation of the market, were forced out of the tragedy played almost every day. Stop Why is it so difficult? There are three reasons: First, the chance of psychological mischief. Some investors also know that despite the trend has been Po Wei, but was too hesitant, always like to look at, wait a minute, resulting in missed their stop-loss of good time; Second, frequent fluctuations in prices will make investors hesitant to undecided, frequent stops will give investors the wrong left lingering memories, and thus shake the determination of investors to the next stop; Third, the implementation of stop-loss is a painful thing, is a bloody process is the weakness of human nature challenges and tests.

In fact, each transaction is correct we can not determine the status or error status, even if profitable, we are also difficult to determine the immediate appearance or the holders of wait and see, let alone in a fitted state.