Forex Trading Tips：
How to choose a foreign exchange trading variety for a novice in foreign exchange trading
First of all, it is necessary to understand that the varieties of the foreign exchange market are mainly divided into two types: direct and cross. The direct disk refers to the currency pair containing the US dollar , whereas the cross disk refers to the currency pair that does not contain the US dollar.
For example, USD/ JPY , USD / RMB , etc. are direct trades; such as GBP / JPY, EUR / RMB, etc., this is a cross trade.
As we all know, different currency pairs have different trends and different operating methods. The following is an introduction to the trading experience of direct intraday trading, which is a reference for newbies.
In the direct session, it is divided into European currency and non-European currency:
First: European currency
The most European currencies do are USD/CHF , EUR/USD and GBP/USD :
USD/ CHF . This foreign exchange trading variety has the most regular trend. Compared with other trading varieties, the existing technical analysis methods such as the k-line theory and the pattern theory are very limited in analyzing the USD/CHF market trend. However, the point value of USD/CHF is relatively small, the volatility is relatively large, and the stop loss point should be set larger. Therefore, according to experience, it is recommended to consider participating in the USD/CHF transaction when it is profitable and has a strong psychological tolerance;
The trend of the euro is also more regular, and there is less intervention. It is easier to judge by using technical analysis methods. At the same time, you can also refer to the trend of the US dollar and the Swiss franc. There are more references, and the error rate will be smaller. The euro point value is larger, and the volatility is smaller compared to the Swiss franc, and it is easy to set a stop loss point.
The general trend of GBP/USD is similar to that of the euro, but due to the small currency circulation, the fluctuation range is relatively large, and it is more difficult to set a stop loss. However, once the direction is judged correctly, the profit will be considerable compared to other currencies. Investors should start trading GBP/USD after gaining some experience.
Second: non-European currencies
In non-European currency transactions, many foreign exchange speculators will choose USD/JPY. The main reason is that it is easier and more convenient to obtain information about the yen. However, according to experience, it is found that when USD/JPY is below 120, the operational value Relatively small, the reason is that the Japanese government frequently intervenes in the foreign exchange market. Stop-loss orders are not easy to place because the size of the intervention is not known. Therefore, if investors have other options, they do not necessarily have to do the yen.