Many foreign exchange speculators fail to speculate because they do not have the skills to escape from the top. So, how to properly escape the top when speculating in foreign exchange ?
How to correctly escape the top when speculating in foreign exchange ?
Patience and preservation of strength are the most important things in a downtrend. Good steel is used on the cutting edge, and it is the best choice to buy funds at the safest low point. It may seem that the buy point is not the lowest point, but the result is often that we buy less than anyone and we end up making more than anyone.
Of course, there is a very critical issue here, that is, we must accurately grasp the starting point of the rising market, that is, the best time to buy when the bottom is formed.
After the reader understands the deep meaning of “don’t buy the bottom”, the reader will basically understand the “don’t escape from the top”. “Not escaping from the top” does not mean that we are unwilling to take the profits we get. Like the idea of ”don’t buy the bottoms”, we hope to maximize the profits. I have met many Huimin friends, and they all have such a strange circle of thinking. Strange to say. When they get stuck, it can be a little rushed at first. After getting into a deep trap, you will be calm, and it seems that you can feel at ease when you are trapped. If there is a floating profit on the account, trouble will come, they will not eat well and cannot sleep, as if they have acrophobia, for fear that the cooked duck will fly away. The end result is a rush to close a position and make a small profit. Then, watching the market keep rising, he beat his chest and regretted it. When the market was so unbearable, I hurriedly chased it in, and as you can imagine, I was stuck again. All of a sudden, the money I made was returned to the market. Instead, I felt at ease. The career of foreign exchange speculation was in such a vicious circle, day after day, year after year.
It is actually not difficult to overcome such a vicious circle, and the problem can be easily solved by using the method of “not escaping from the top” that we have introduced. In fact, it is very simple to do. When the market is rising, we let the rising currency perform thoroughly. Of course, you can use various methods to predict the height of the market, but this must not be used as the basis for you to close the position and leave the market. If the market has reached the height you predicted and there is no sign of ending the rise, then you should respect the trend of the market, continue to hold positions and wait for the market to rise until the rising trend has a top pattern.
How to correctly escape the top when speculating in foreign exchange? Generally speaking, when a top occurs and the pullback cannot exceed the previous top again, this is where we need to escape from the top. “Don’t run to the top” doesn’t mean we don’t really run for the top, it means that we don’t run for the first top, because the first top may not be the real top, we go for the second top, usually the second one. The first top is the same height as the first one. In this way, we basically sell at the highest position, and the profit will naturally be maximized.