Practical Tips for Trend Trading

Trend trading is very important in foreign exchange investment skills, but how many people can define "trend", and what is given online is all mysterious and mysterious things, which have no practical significance at all. There are four basic trading principles in foreign exchange trading, these principles include: use trend trading; stop losses in a timely manner to minimize losses; maximize profits; and manage risks. Many investors often say that to do trend trading, they must follow the trend, but in practice they often fail to do so.

First, several trends in the foreign exchange marketTrends can be divided into nascent trends, continuing trends, and ending trends. Investors should operate differently for these three types of trends. For nascent trends, it is intended to grasp and analyze whether the trend can be sustained. For sustained trends, pay attention to the patience of your positions. For end trends, on the basis of the first two steps, you must have a thorough understanding of the fundamentals, technical and capital aspects of the market, and pay attention to closing positions when the market panics, position squaring exit.

Second, grasp the dynamic trendInvestors need to know all about the movement of trends. How the trend is going, whether it will consolidate or reverse rapidly after the trend is over, these are all things that investors need to figure out. The author believes that when doing foreign exchange trading, we should have a childlike innocence, that is, a quiet mind, so that we will not lose sight of the market due to too much self-speculation. This is also the true meaning of most successful foreign exchange people often say that trading should strive for simplicity.

Third, homeopathy can sometimes hurt people, To grasp the timing of the point: Pay attention to the control of the opening time, don't be in a hurry, you have to wait. Trend trading is naturally a medium and long-term. The few investors I know who have done well are average and stable in personality, and their lives are also very regular. They are not impulsive in doing things.

IV. Sensing the pace of the market：foreign exchange marketMore than a dozen foreign exchange varieties, their operating rules have both similarities and differences. Investors need to understand the "character" of different varieties in a period of time, whether it is as fast as the wind or as gentle as the wind. If the current PTA is a trend oscillation and decline, repeated within the day, it is necessary to control the position and keep an eye on the market. For varieties with strong linkage, we must also observe the operation of foreign countries, such as the recent Shanghai copper, a comparison between domestic and foreign markets, it is definitely a short-term downward trend.

Measure the stability of a variety trend over a certain period of timeIn the process of foreign exchange market operation, the trend can be divided into the beginning, continuation, and end stages. However, in the process of turning the trend at each stage, we must carefully experience and master its laws. In the process of trading, we must follow the general trend, that is, understand which trend we are currently participating in, and try not to participate in the trend. In the process of trend conversion, the trend oscillation is also related to the outer disk and the outer disk is not doing well. In all the signals that can participate, not only should the risk-reward ratio be counted, but also the stability of the trend should be analyzed. The author believes that compared with the fluctuation range of the trend, more attention should be paid to the stability of the trend.

In the process of trend trading, do not participate in rebound and correction transactions, especially when other varieties are trendingWhen trading a variety, it is necessary to refer to the related varieties, especially when the trend divergence is serious, and avoid risks. In the face of a trend caused by long-term fundamental factors, investors must first look for opportunities to trade with the trend. At the same time, even if there is a slight technical counter-trend, it can only be regarded as an adjustment to the current trend. If the fundamentals have better reasons to support the market adjustment, after the fundamentals lose momentum, the trend is very likely to return to the early stage, and we must always pay attention to the adjustment signal that the trend may end. If there is no reasonable explanation for the current trend adjustment from the fundamentals, it is first considered a technical adjustment, and then measures must be taken according to the theory of technical analysis.