What strategies should be followed in foreign exchange fund management? When many investors experience losses in foreign exchange trading , the reason is always attributed to mentality, operation strategy or luck. In fact, systematically speaking, there are two aspects: one is whether the plan is perfect, and the other is whether the plan is implemented. strict. Whether the funds are used correctly and according to the correct plan is important to the results. What strategies should foreign exchange funds management follow?
Don’t care about the profit or loss of a single transaction. Correct foreign exchange capital management should be committed to long-term and stable profits. Otherwise, even if you can occasionally achieve good profits, you will eventually return to the market. Many people who fail are not clear. this problem.
According to the author’s experience and understanding of some successful peers, if investors want to obtain long-term and stable profits in the foreign exchange market , the right or wrong of market analysis can only account for 30% of the success factors at most, and capital and risk management are absolutely accounted for more than 50%. Fund management refers to how to allocate funds in investment and maximize the use of funds to obtain the maximum possible profit; and risk management refers to the consideration of the risk level of transactions and the ability of investors to bear, in order to minimize investment risks.
The best way to manage foreign exchange funds is the pyramid plus method. Suppose the investor has a principal of 100,000 US dollars , and the investor buys 30,000 US dollars at a certain point, such as gold 1400; when gold rises to a certain point, such as At 1500 gold, investors believe that gold will continue to rise, but there has been a period of increase, and the future growth space may be limited, so the amount of funds will be reduced to 20,000 US dollars when buying again; when gold is 1550, investors still If you think it will continue to rise, you will buy more, and because the current increase is larger than the first time you increase the position, the room for growth may be smaller, so you invest less money than the first time increase, such as $10,000. .
The second method is called the inverted pyramid coding method. With our understanding of the pyramid coding method above, our understanding of the inverted pyramid coding method is much simpler. Also taking the above example as an example, the inverted pyramid plus method is to buy 10,000 US dollars, then buy 20,000, and then buy 30,000. Each time you increase the funds, more and more funds are added, so it is called the inverted pyramid plus method. .
The key to foreign exchange capital management lies in the reasonable allocation of funds, taking an appropriate proportion of funds to enter the market for trading, no matter how much you grasp, you must also take into account the possibility of risks, and it is up to the trading discipline to decide how much risk you can take, not emotions. . Only in this way can we manage and control transaction risks from the source and do a good job in the safety of funds.