Personal Trading Practice 100 Cases

Author: Xu Ge
Publisher:
Publish Date: 2004-07-01
Features: The purpose of this book is to judge the short-term, medium-term, and long-term trends in the foreign exchange market through a series of intuitive graphics. Since the foreign exchange market is the world's largest and most regulated speculative market, it has attracted millions of investors, and it has developed quite rapidly in recent years, especially domestically. With the increase in personal foreign exchange deposits and the growing awareness of investment, the business of individual foreign exchange trading has expanded rapidly, making it a trend for individuals to trade foreign exchange. In actual practice, foreign exchange trading can indeed yield significant profits. From 2002 to the first half of 2003, the euro surged by 20 against the U.S. dollar. If the dollar were deposited in a bank, it would have equivalent to a 20 loss, which cannot be compensated by deposit interest. Therefore, individuals with foreign exchange have gradually moved beyond the old mindset of only relying on deposits to increase their wealth. The saying "If you don’t manage your wealth, your wealth won’t manage you" holds true here. Through the exchange of foreign currencies, we can quickly increase the value of our foreign exchange assets, sometimes earning a year’s worth of interest in just one trading day. Skilled traders can reliably achieve 10–20% returns in a year. Additionally, the realization of profits from individual foreign exchange trading is indeed feasible. As mentioned earlier, this market is relatively regulated, making the overall exchange rate trends relatively straightforward. The elimination of factors like emotional swings reduces the uncertainty in judging exchange rate movements. Moreover, the foreign exchange market operates 24 hours a day and allows for same-day settlement, which poses no time constraints for working individuals. Compared to other groups, working individuals have an advantage in trading foreign exchange because market fluctuations often occur at night, while daytime volatility is relatively low, making it more convenient for them. Although the market is relatively easy to judge and offers opportunities for profitable trading, any speculative market requires a certain level of knowledge. Regardless of how simple the market may be, an investor must possess basic trading skills to stand a chance of profiting. Otherwise, relying on luck alone carries significant risks, and the foreign exchange market is no exception. The techniques for judging the foreign exchange market are actually quite simple. By using some basic graphics and additional trading precautions, we can make a general assessment of the overall trend. This book aims to provide a straightforward analysis of the foreign exchange market using relatively fundamental and intuitive graphics, enabling readers to grasp the basic principles of reading charts to understand market trends. The book covers most of the analysis techniques used in the foreign exchange market. In the later sections, it also introduces some insights into psychological balance and position and capital management. We hope that by reading this book, readers will benefit and improve their practical skills, achieving the goal of "With this book in hand, foreign exchange trading will be worry-free."