Foreign exchange earnings skills, foreign exchange experts never reveal

Foreign exchange skills/

Foreign exchange experts never reveal the profit stopping skills, I use two methods. When it comes to the profit stopping in foreign exchange speculation, one method is static profit stopping. It means to set up a specific profit target. Once the profit target is reached, we should resolutely stop the profit. This is an important means to overcome greed. Many investors are always worried that if they sell, they may lose the higher selling price in the future market. This situation is objective. In practice, more than 99% of the time, there will be higher selling price after selling. However, if investors try to earn every profit, it is unrealistic and risky.

Static stop position is the so-called psychological target position. Its setting method mainly depends on the investors' understanding of the general trend and long-term observation of varieties. The profit stop position determined is basically static. When the price rises to the price, it will immediately take profits. This method is suitable for medium and long-term investors, investors with stable investment style, and novice investors who have not been in the market for a long time and have weak ability to study and judge the market. Generally, novice investors should appropriately reduce the standard of profit stop position to improve the safety of operation.

Foreign exchange earnings skills, foreign exchange experts never reveal

The second method is dynamic stop. It means that when the position is profitable, due to the good rising form or fundamentals and other reasons, the investors think that there is still upward momentum, so they continue to hold the position until the price falls down. When it reaches a certain standard, the investors take the operation of selling for profit. There are several standards for setting dynamic stop position

1. The range of price fall. If the price is reduced by 5% ~ 10% compared with the highest price, it will stop selling. This is just a kind of reference data. If investors find that the price has indeed peaked, even if it does not fall to the 5% standard, they should resolutely sell.

2. The moving average broke to stop earning. In the rising market, the moving average follows the rising price. Once the price turns around and breaks through the moving average, it will mean that the trend weakens. Investors should stop earning immediately and keep the fruits of victory.

3. The technical form is not profitable. When the price rises to a certain stage, stagflation occurs, and various head forms are constructed, we should resolutely stop the surplus.

The most important psychological requirement in profit stopping is decisiveness and determination. When prices stagnate or fall, investors in the profit-making stage can not be indifferent, nor can they fail to understand the importance of profit stopping. What is lacking is the determination to stop profit. Therefore, investors should not be hesitant and delay the opportunity to stop profit, they must be decisive. If profit stop is the basis to ensure the stable growth of capital market value, then decisiveness is the basis to effectively implement profit stop.

[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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