Investment security strategy - biding your time

After an overall evaluation, when selecting a certain currency as a strategic investment target, then waiting for the time to come will be the top priority. Due toforeign exchange marketThe implementation of the margin system makes price fluctuations seem more severe than other markets, so timing is particularly important. Although the issue of timing is local and tactical, a good intervention area is a strong guarantee for strategic defense and strengthening position confidence. It is also an important step for the effective implementation of the entire investment plan.

The timing should be chosen from the perspective of safety and ease of defense, otherwise the investment motive will accidentally fall into a greedy situation. The so-called ease of defense means that even if the general direction is wrong, the incoming position can exit the market without losing or losing a small amount.

A good entry area is like a military "base area", which can be attacked and defended. So, how to determine the "base area" in foreign exchange trading? This can be grasped in two ways: (1) mainly through technical forms and other means; (2) comprehensively evaluate the basic information of the positive and negative aspects of the market. Therefore, the purpose of seeking and waiting for the maturity of the market is to wait for the situation where the risk is limited and the potential is huge - this is the real connotation of investment.

In the days of the Red Army, Mao Zedong famously said: "Lure the enemy deep, concentrate the superior forces, and fight the war of annihilation". As for "lure the enemy deep", he explained it this way: This is the most effective military policy for the weak army to fight against the strong army in strategic defense. This is not fear and evasion, but an active defensive strategy. Likewise, we should admit that any investor is weak in the face of the market, especially under foreign exchange leverage. Therefore, the best time to grasp the timing is when the market rebounds and adjusts, and when its true trend is revealed (the principle of the general trend); and when the market breaks out, it is a good time to up the ante. Under the conditions of general direction determination, the more dangerous the place looks, the safer it is, and the seemingly safe place is often not safe.

For the grasp of timing, there is a saying in the military that "the enemy is tired and we fight", as well as "avoid its vigor and attack its lazy return". A famous example of fighting with the weak against the strong - the long-spoon battle between Qilu and Qilu during the Spring and Autumn Warring States Period. Cao Gui's explanation of the war situation is: "One drum of energy, then decline, and three exhaustion. He exhausts my profit, so I can overcome it." Among them, "three exhaustion" is the key point of the fighter plane. Translated into foreign exchange language, it is: when the new trend is formed after the original trend is over, or when it returns to the original trend after adjustment. In this way, the establishment of the market direction makes the position established by the trend safer and more stable - the strong driving force of the market is the real powerful guard.