Due to the ever-changing nature of the foreign exchange market, forex investments often come with a certain level of exchange rate risk. Therefore, when engaging in forex investment, it is crucial to focus on investment strategies. Investors should ideally create a simple investment plan before investing, ensuring they have clear objectives and avoiding unnecessary losses from blind investment.
Firstly, investors need to understand their own investment needs and risk tolerance. Some investors primarily use their foreign currencies for investment appreciation and can tolerate higher risks; others may also invest in foreign currencies but are risk-averse, considering capital preservation as their investment baseline. Additionally, some individuals hold foreign currencies for future purposes such as studying abroad or traveling overseas. Thus, fully understanding one's investment needs and risk tolerance should serve as the foundation for making investment decisions.