EBC foreign exchange trading mindset: winner experience and risk control skills

foreign exchange marketUnlike the stock market, stock investment will follow the growth of the company and issue shares at a surplus, giving shareholders the opportunity to profit together, but the foreign exchange market is a typical zero-sum game where you lose money and I earn money. This is like a ring game, each participant needs to pay the registration fee as a bounty, and only the top-ranked winner can collect all the bounty. To profit from other people's pockets, technical analysis skills are only basic equipment, and more importantly, the correct concept and mentality. Here are some winners' thoughts for reference:

Method 1: Accumulate practical experience

Practical experience is a key factor in whether foreign exchange trading can be profitable, and it is inevitable to pay some costs to accumulate experience. In order to avoid excessive losses during the learning process, it is recommended to practice through simulation trading first. For example, many regular foreign exchange brokers (such as ebc foreign exchange) offer demo accounts, which is convenient for beginners to familiarize themselves with the operation process.

Method 2: Learn to stop losses before making money

Stop loss is also a basic skill. In addition to using technical indicators, moving averages, and previous highs and lows as the basis for stop loss, capital stop loss is more critical. For example, if the total capital is 100,000 yuan, the actual order amount should not exceed 20,000 yuan, and a single loss of 30 or 50 points should be left decisively. If the cumulative loss reaches 50% and still cannot achieve stable profit, you may need to reassess whether you are suitable for this market and consider other financial methods.

Method 3: Leveling can only be done once

Taking going long as an example, sometimes I am worried that the market has already started, and I will chase the price to build the first basic position, and the price may not be ideal. If the market later steps back to the ideal price originally planned to enter the market, you can refer to the idea of stock leveling and appropriately increase multiple orders to reduce costs. However, this leveling action is only done once at most. If it falls below again, it means that the judgment is wrong and you should leave the market first.

Method 4: Avoid heavy positions when there is no profit

Even if you are confident about the market, don't take a gamble and operate heavily. It's easy to say, but I have also made such a mistake. At the beginning of the year, I thought that the dollar was under heavy selling pressure. Some phenomena are similar to last year's retracement and decline. Misjudgment will lead to a pullback of more than 100 points. During the consolidation process, you will continue to add positions and short positions, and the result will naturally be forced to stop losses.

Method 5: Use the money you earn to make up the ante

The up the ante technique is the art of foreign exchange operation, and it is also a university, so it is difficult to explain it comprehensively here. But there is a big principle: the purpose of up the ante is to maximize the profit of the swing market, but when the market first starts to rise, no one knows whether this is a trend market or a range fluctuation, so it is best to up the ante when the position is profitable, so the psychological pressure will be much smaller. When up the ante, don't fill up all at once, but slowly add up positions in batches. You can refer to the 15-minute, 30-minute or 60-minute K-line chart. The closing price of each K-line does not break the previous low (take long as an example), and then up the ante, otherwise keep watching.

Mentality 6: Thinking about Trend Direction

Investors can regard the quarterly average line as a general trend. For example, the current index is above the quarterly average line, and the market trend has repeatedly hit new highs rather than new lows. Therefore, they should try to use the strategy of buying first and selling later. However, non-US currencies have risen a lot, and the risk of chasing higher after reaching new highs is high. It is best to find important support to buy long when the price pulls back sharply.

Mentality 7: After making a profit, it is safe to drop the bag at the right time

Once you become a foreign exchange trader who can make steady profits, keeping profits is a new knowledge. You can use the account quota system, such as setting 100,000 yuan as the maximum investment capital limit, and withdrawing the excess part to the bank in time. Or only invest 50,000 yuan per month, and the profit part is used for up the ante trading.