Forex margin trading skills
"Speculation with spare money, investment with winning money". The funds that investors use for speculation must be spare money that can be lost, and do not use other funds or property. If they speculate on foreign exchange with living expenses, investors may not be able to make correct judgments due to more concerns, which will eventually lead to speculation failure. After winning money, they will take out 50% of the profit and invest in real estate.
Second, control emotions. Investors must be calm, control their emotions, and respond calmly to sudden changes in the market, otherwise they will miss opportunities or suffer losses due to indecision.
III. Start with small transactions. For investors who are new to the market, they must start with small-scale transactions, and choose products with relatively stable price fluctuations to intervene, gradually master the trading rules and accumulate experience, and then increase the trading scale and choose products with severe price fluctuations.
Fourth, the number of positions should generally not be too large. Investors generally use 1/3 of the funds to open positions, and if necessary, they need to reduce the amount of positions to control transaction risks, so as to avoid funds due to excessive opening volume, positions and price fluctuations in the opposite direction and suffer heavy losses in capital.
In trading, there should be no desire for quick success. Investors should not enter the market according to their own subjective wishes. Successful investors generally strictly separate their emotions from trading activities, so as to avoid the market trend and personal wishes to bear heavier risks.
Do not change the plan at will during trading. After the operation strategy is decided, investors must not change the operation strategy at will due to the sharp fluctuations in foreign exchange prices, otherwise they may make a correct judgment and miss the opportunity to obtain large profits.IEXSforeign exchangeAt the same time, due to the possibility of unnecessary losses or only small profits, we also have to bear the transaction fees caused by frequent transactions.
Seven. Learn to wait and see, take a break. Trading every day not only increases the probability of investment errors, but also may increase transaction costs due to being too close to the market and trading too frequently. A wait and see break will allow investors to analyze and judge the general direction of the market more calmly. When investors lack sufficient confidence in the judgment of market trends, they should also sit on the wall and wait, know how to be patient and self-control, in order to wait for the opportunity to re-enter the market.
Eight. Don't go with the flow. History has proved that when the general trend is extremely obvious, or when the general trend is reversed, the majority's views are often wrong, and only a few people make money in the market. When the vast majority of people are bullish, the market may have reached the top, and when the vast majority are bearish, the market may have reached the bottom. Therefore, investors must always make independent analysis and judgment of the market trend. Sometimes it is profitable to go the other way.
Go your own way. Don't let other people's opinions and opinions influence the direction of investors' trading. Once investors have established a preliminary concept of the market, don't change it easily. Easy changes in trading plans will make investors' judgments about the general trend direction waver and may miss opportunities.
Choose a currency that is actively traded for investment. Investors generally choose more active contracts with a large trading volume and a large position to trade to ensure the smooth flow of funds, that is, to facilitate opening and closing positions.
When the price breaks through the limit position for a period of time, buying and selling transactions should be carried out. When the price effectively breaks through the highs and lows of the previous trading day, last week's trading, and last month's trading, it generally indicates that the price will form a new trend. Investors should make an immediate decision and conduct buying and selling transactions separately.
XII. Pyramid trading. When investors hold positions to obtain floating profits, such as up the ante position must be gradually reduced to gradually reduce the cost of holding positions, that is, gradually reduce the average price of multiple orders or increase the average price of short orders, and the risk will gradually decrease; on the contrary, the cost of holding positions will gradually increase, that is, gradually increase the average price of multiple orders or reduce the average price of empty orders, and the risk will gradually expand.
XIII. Do not trade at the same price. When investors open positions, it is safer to open positions multiple times to observe the direction of market development. When the direction of opening positions is consistent with the direction of price fluctuations, you can reserve funds to open positions up the ante. When the direction of opening positions is opposite to the direction of price fluctuations, you can avoid heavier trading losses due to heavy position intervention.
XIV. Loss-making positions are generally not suitable for up the ante. When investors hold positions in the opposite direction of market price fluctuations and their positions are at a loss, in addition to investors having sufficient funds to carry out counter-trend operations, generally speaking, investors should not up the ante, so as not to cause losses to continue to increase and risks to increase.
When the market price moves in the opposite direction to the investor's position, the investor should take decisive measures to exit the transaction to ensure that the loss is as low as possible and within the acceptable range. Generally speaking, the loss-making position should not be held for more than two to three trading days, otherwise it will lead to increasing losses, and investors will suffer major losses and lose the opportunity to continue trading and turn losses into profits.
16. Let profits accumulate. Earning small profits and taking back may lead to investors' final investment failure due to small profits and large losses. When the market trend is consistent with the direction of investors building positions, investors should not easily position squaring, and find sufficient reasons for position squaring before taking back profits.
XVII. Be ready to accept failure at any time. Foreign exchange margin investment is a high-risk and high-profit investment method. Investment failure will be inevitable throughout the investment. It is also an important way for investors to gradually learn lessons and accumulate experience. When investors face investment failure, only by carefully summarizing can they gradually improve their investment ability, avoid risks, and strive for profitability.
Setting up a strict and reasonable stop loss. Before trading, investors must set up a strict stop loss to control the possible losses within a tolerable range. If the stop loss range is too wide, it will lead to heavier losses. If the stop loss range is too narrow, the position will be easily swayed by smaller losses, thus losing profit opportunities.
Do not expect to build a position at the best price or position squaring. Selling at the top and buying at the bottom are small probability events, and the game of hitting the top against the trend or knowing the real situation will be very dangerous. When investors confirm the market trend, they should immediately enter the market to trade. Obtaining swing profits should be a reasonable investment goal pursued by investors.
When there is a major bullish or bearish news in the market, it should be built or shorted, and when the above news is announced to the public, the market is likely to run in the opposite direction, so investors should immediately take back multiple orders or fill short orders.
Twenty-one, there is profiteering that is position squaring. When investors hold positions to obtain profiteering in a short period of time, they should first consider profiteering position squaring, and then study the reasons for the violent fluctuations in the market, otherwise they will miss the opportunity to profit.
Twenty-two. Learn to short. For investors who are generally new to the market, there are more long dips and less short dips. In the context of a buyer's market in the commodity market, it is often easier for prices to fall than prices to rise. Therefore, investors should seize the opportunity to short dips.
Twenty-three. Act quickly. When investors decide to trade, they must act immediately becauseforeign exchange marketWith rapid change, hesitation often leads to a narrowing of profits or an increase in losses.
Twenty-four. Don't compare every penny. When investors confirm the direction of the general trend and decide to trade, they should not lose profits that may gain a large band of movements due to the low buying price and the high selling price. They should ensure that the position is completed as much as possible.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
