What you need to know about foreign exchange trading
The essence of foreign exchange trading is "buy low and sell high" or "sell high and buy low". It is very simple to say, but in practice, it is often complicated. Now let's summarize the foreign exchange trading skills. These skills will help investors make more profits in the foreign exchange market.
1. Learn to establish foreign exchange account position, stop loss position and profit closing position. The establishment of a position is the opening, also known as exposure, that is, the act of buying one currency and selling another at the same time. The money bought after the opening is called long and the currency sold is called short. Choosing the appropriate exchange rate level and timing to establish a position is the premise of profitability. If the time to enter the market is better, the opportunity for profit will be greater; on the contrary, if the timing of entering the market is improper, it is easy to make losses.
Stop loss cutting is a measure taken to stop the loss when the exchange rate of the currency falls after the position is established. It is difficult to grasp the actual profit. After the establishment of the position, when the exchange rate has developed in a favorable direction, closing positions can make profits. However, it is very important to grasp the timing of profit. If the market is closed too early, the profit will not be much; if it is too late, it may delay the opportunity, and when the exchange rate trend reverses, it will not win but lose.
2. We should master the basic principle of buying up rather than falling. Because in the process of price rise, only one point is wrong, that is, when the price rises to the peak, any other point is right to buy. Only one thing is right to buy when the exchange rate falls, that is, the exchange rate drops to the lowest point. Other than that, buying at other points is wrong.
3. Learn to use the principle of pyramid weighting. When the exchange rate of the currency we buy for the first time continues to rise, we should follow the principle of "the amount of money increased each time is less than that of the last time". Because the higher the price is, the more likely it is to be close to the peak of the rise, and the more dangerous it will be. Therefore, the amount of overweight will gradually decrease.
4. Don't add code when losing money. When we buy or sell a currency, when the foreign exchange market suddenly rushes in the opposite direction, some people want to increase the price. This is very dangerous.
5. We should abide by the principle of buying (selling) when rumors are rumors and selling (buying) in real time. The correct way for foreign exchange investors is to buy immediately when they hear good news, and take profits as soon as the news is confirmed. vice versa.
6. When the trend of foreign exchange market is not clear, try not to participate. Because if the foreign exchange market is not clear and you lack confidence in the current analysis, it is easy to make wrong judgments. Therefore, it is better not to enter the market.
7. Don't miss the opportunity by blindly pursuing integer points. Some foreign exchange speculators often set a certain target for themselves. Sometimes the price is close to the peak, but in order to achieve their goals, they miss a good opportunity in waiting.