Forex trading has the same trading skills as other investments. Here are some strategies for profitable foreign exchange trading .
Don’t overtrade
To be a successful investor, one of the principles is to keep more than 2-3 times the capital at all times to cope with price fluctuations. If your funds are insufficient, you should reduce the sales contracts you hold, otherwise, you may be forced to “liquidate your positions” to free up funds due to insufficient funds, even if you prove accurate after the fact.
good at waiting for opportunities
Investors do not have to enter the market every day. New entrants are often keen to enter and trade in the market, but successful investors will wait for an opportunity.
Don’t be mistaken for a few points
In foreign exchange trading , do not blindly pursue whole numbers when making a profit. In practice, after establishing a position, some people set a profit target for themselves, such as making enough $ 200 before leaving, always waiting for this moment to come.
After making a profit, sometimes the price is close to the target. At this time, there is a good chance to make a profit, but it is only a few points away. I could have closed the price and collected money, but due to the original target, I missed the most important position while waiting. Good price, missed opportunity. Remember, it’s not worth it to make mistakes in order to force a few points,
Don’t expect the lowest price
Generally speaking, after seeing a high price, when the market falls, you will feel quite unaccustomed to the new low price; but even if various analysis shows that the market will fall again, the market investment climate is very bad, but investors in these Before the new low price level, not only will they not sell their foreign exchange holdings, but they will also feel that the price is very “low” and have the urge to buy, and as a result, they will be firmly trapped after buying. Remember, “the price of the past”, let it pass completely!
Watch for opportunities in the game
Disk game refers to a situation in which the market price fluctuates within a narrow range, the buying and selling forces are evenly matched, and the situation is temporarily in a state of confrontation and tug-of-war. Regardless of whether the market is in a rising market or a falling market, once the market is over and breaks through the resistance or support level, the market price will break through and make a breakthrough.
For experienced investors, this is a good time to enter the market to build a position. If the game is a long-term barrier, the position established when the game is broken will be rewarded.
Strictly enforce stop loss points
Many investors believe that there is no risk in foreign exchange trading. If the exchange rate rises, they will sell it to earn the difference; if the exchange rate falls, they will save money on a regular basis to earn interest. As long as there is interest, it can always make up for the loss, but it will take longer.
But sometimes making up interest is just a drop in the bucket relative to the loss of investment, and it doesn’t make much sense. Just like when the euro was first introduced, many people were optimistic about its prospects and bought the euro when the price was 1.13 yuan. However, the euro has entered a slow decline, and the minimum fell to about 0.82 yuan, and it fell once Just over two years.
If such losses are to be covered with interest, it may take at least seven or eight years. Therefore , a stop loss point should also be set up when investing in foreign exchange , and this stop loss point should be strictly implemented.
Set a stop loss point, and once the market reverses and the exchange rate falls to the stop loss point, you must be brave enough to cut your teeth. This is a very important investing skill. Due to the high risk in the foreign exchange market , in order to avoid losses due to investment mistakes, we should set a stop loss point every time we enter the market, that is, when the exchange rate falls to a predetermined price, it may also fall. , the transaction is settled immediately.
In this way, even if the losses are limited, the losses will not be further expanded or even lost. Because even if the meat is cut for a while, the investment capital is still there, and the green hills are left, and there is no fear of running out of firewood.
Market price reversal, immediate liquidation
Sometimes I buy and sell with the market, but when I enter the market, it is nearing the end, so we should pay attention to it. For example, after a bull market buys, the market retraces sharply. Don’t panic, it’s best to reflect. If it can be determined that the current trend is reversing, it is necessary to immediately cut the position and take a counterattack.
It is not advisable to follow up rashly during a sharp rise
In the foreign exchange market, the sharp rise or fall of the price will not rise or fall like a straight line. The magnitude of the adjustment or rebound is more complicated and difficult to grasp. Therefore, after the exchange rate has risen sharply by 200 to 300 points or 500 to 600 points, one should be extra careful.