If you want to be profitable in foreign exchange trading , effective application methods are a very critical part. So what are the methods of foreign exchange trading? The editor below will introduce to you, what are the trading skills of foreign exchange investment ? What are the foreign exchange trading methods.
- Use the simulated demo account to find the feeling of speculating in foreign exchange
In the current investment market, all kinds of meat are not guaranteed to win or lose, and foreign exchange speculation is naturally no exception. Therefore, before deciding to invest in foreign exchange, you must study and train carefully, from the simple to the deep, and be able to
First use a simulated demo account to experience the feeling of speculating in foreign exchange. The online operation panel and operation method of the simulated demo account and the real account are exactly the same, the cleaning service is also real, and investors can
Try to simulate the actual operation of the demo account, first understand the platform transaction and operation steps. Then gradually touch the fundamentals and technical aspects of some stocks, and accumulate some trading experience and trading methods. In the end, according to its own profitability, the decision is to open or not.
- Find the prime time to open a trading position
“Opening a trading position” means opening. In the foreign exchange sales market, the opening of a new house is also called open, which is an individual act of buying one currency and selling another currency. Therefore, picking a moderate interest rate level and the opportunity to open a trading position is a prerequisite for profitability.
Creating a trading position may seem like a relatively simple problem, but in fact, there are many special things. If you master it well, you can make money. If you don’t master it well, you can only see the assets in your account slowly shrinking.
- Participate in trading when the foreign exchange market is most active
When the exchange rate is weak in buying and selling, the market will not fluctuate much. This is called “sideways” in the foreign exchange market. From the perspective of buying and selling, it is the least risky to pursue the opening after the development trend is bright.
Buy when the exchange rate is sideways, the development trend is not optimistic, the probability of rising and falling is 50%, then you will be damaged. After the transaction, the exchange rate cannot rise or fall, which will definitely increase the psychological burden. If the stock is short-term speculative, the chances of failure are greater.
If the trading activity is active, the energy of the buyers and sellers in the sales market at that time is not equal, but one party cannot support it, and the exchange rate fluctuates greatly. When the positioning point you buy is not very good, you will definitely be quilted by deep stocks.
Investment analysts in the exchange review often talk about the upshift pressure level, just below the support line, which shows that these two positioning points are the key to buying and selling. The exchange rate probed to the pressure level, which was undoubtedly suppressed. If the energy of this increase is very strong and breaks through this pressure level, the latter trend will definitely rise again. If it cannot break through the pressure level, the latter trend will definitely peak and decline. Find the pressure level and support line, and you will have the operation steps after the potential.
Unable to break higher or address early. The highs that did not break through in the early stage must be frictional resistance, and the bottom points that did not break through in the early stage must be support points. In this way, we can be bearish without breaking the high, and open long at the support point at the bottom point.
- Learn to detect good opportunities from a variety of information
Doing foreign exchange requires immediate attention to the economic indicators released on time and the vicious events that endanger the information. Whether the information content of economic indicators and the content of first-hand major events can be obtained in the first time seems very important to foreign exchange trading investors, especially for foreign exchange trading investors who are short-term stocks. As soon as a newsletter reaches the sales market, the original stable situation is immediately thrown away. A foreign exchange investor with work experience will analyze the harm of information to the economic and financial level, and resolutely buy or sell a certain type of currency, thereby obtaining relatively rich profits.
- Properly distinguish top and bottom
In the whole process of foreign exchange investment, how to know the top and bottom is the most basic reading skills in actual operation and the key way to achieve successful trading. Especially in the whole process of a currency ‘s continuous rise or fall, if investors can distinguish whether the market is at the bottom or the top when investing in foreign exchange, then investors can do as much as possible in the entire process of opening a stock position. Reduce the average position price, get the cost advantage of buying and selling, and get very good profits.
- Skilled application of moving averages
Forex speculation should often be analyzed using candlestick charts. The moving average is applied to the candle chart supporting facilities, and the candle chart and the moving average are applied together. many
This method is used to carry out the most basic analysis of damage, and the accuracy of this index value is still very high. The moving average is one of the basic performance indicators that must be grasped.
In buying and selling, a simple moving average is often used, because it grasps the market conditions most quickly, is most easily seen, and takes effective preventive measures.
Simple moving average: The closing price within a few days wants to go home, and then divided by the number of days, an average is obtained. And so on, do the following scalar values ​​in this way again, and get a lot of
mean. Connecting these values ​​together produces a parallel line, which is a simple average line.
In general trading, the 5th, 10th, 21st, and 30th are the key identification criteria for short-term stock trading. 60-day moving average, 100-day moving average, and 150-day moving average
As a distinguishing basis in the middle and late stage, the 200-day moving average and the 250-day moving average can be used as a long-term practical basis.
Mr. Granby, an authoritative American investment expert, has a solid foundation in the scientific research of the moving average, and he created the eight laws of Granby. Investors grasp this law, the moving average will become an artifact in their hands.
The basic principle of the law: the exchange rate should fluctuate closely around the moving average from beginning to end, and cannot deviate very far. If the exchange rate is far from the moving average, it should return to the moving average.
(1) When the moving average line turns from falling to sideways or rising, and the exchange rate has already broken out from the lower level of the moving average, crossed the moving average and went up again, it is a key buying data signal.
(2) The exchange rate continues to rise and remains in the moving average, or the moving average is prevented from falling suddenly, but it does not fall below the moving average and will rise again.
(3) The exchange rate fell below the moving average in a short period of time, but quickly recovered to the moving average. At this time, the moving average showed an upward trend.
(4) The exchange rate suddenly fell, and the decline was huge, and the moving average had already been eliminated. At this time, the exchange rate had just started to recover and touched the moving average again.
There are four situations above, most of which are data signals to buy, especially when the first one is the data signal to buy, the probability of entering the market is relatively high.
(5) When the exchange rate has just started to level off from the rising price and the falling volume, it is sideways or slowly falling, and when the exchange rate falls from the moving average line and crosses the moving average line, it is a key selling data signal.
(6) The exchange rate moved below the moving average, then bounced back to the moving average, but failed to break through the moving average and fell again.
(7) After the exchange rate broke through the moving average line, it did not sit firm, and immediately fell below the moving average line. At this time, the moving average line fell again.
(8) The exchange rate rises rapidly to break through the moving average and put an end to the moving average. The growth rate is very objective, and there will be a callback function anytime and anywhere to fall.
Among the eight rules here, especially in the situation described in (5), the decline is stronger. In such a situation, the stock should stop loss immediately. If the exchange rate does not break through the long-term moving average, or if it breaks and then quickly ends below the moving average, or if it still does not break through after a sideways move, it is a good opportunity to buy.
- Master the key points and problems in foreign exchange speculation
In the whole process of foreign exchange trading, there are many key points that investors must pay close attention to. If they can master them, they will earn more than others.
(1) By observing the growth habit of foreign exchange trading
(2) Pay attention to the harm of summer vacation to foreign exchange market in some sales markets around the world