What are the three major taboos in foreign exchange operations? The foreign exchange operation must abide by the trading discipline. The operation is not arbitrary, and must be strictly implemented according to the predetermined trading plan before the transaction. Only in this way can the ideal trading result be achieved.
1.Avoid forcibly trading without understanding the market. Foreign exchange operations can be safe from being prepared. Generally speaking, foreign exchange investors need to analyze and judge the market before trading. In the transaction, as long as the market does not prove their mistakes, they will stick to their own judgments, but if there is no clear understanding of the transaction. Recognize that the probability of rashly entering the market will increase a lot.
2.Avoid trading with heavy positions. Generally speaking, the use of positions should not exceed 30%, and the remaining 70% of not being used is not meaningless idle, but if the position is too heavy and the market is contrary to expectations, the loss caused by a small fluctuation may be borne by itself Sorry, no one’s success in foreign exchange operations is achieved through a certain transaction, which is a gradual accumulation process.
3, avoid greed. In the previous stage of the foreign exchange market , some stockholders have already cleared their positions. Although it is said that investors in the state of liquidation are often easier to operate, it is inevitable that they will be trapped. Because many stockholders with short positions like to capture some sporadic hot spots in a weak market, but in a weak market, individual stock prices will be restricted to varying degrees, and it is not easy to operate. Some stock friends are also prone to “greed” problems, and it is no exception when the market is weak. Earning five or six percent is not enough. This operation not only loses funds, but also loses the opportunity to chase new hot spots when the market rebounds or reverses. Therefore, we should not operate greedily in the weak market, and set the take profit level at 5% to 7%.