Practical Skills In Foreign Exchange Trading Operations

1. learn to set up a foreign exchange account position, stop loss, and make a profit. "Opening position" means opening or opening, that is, buying a currency and selling another currency.

After opening, the currency that is bought is called long and the selling currency is called short.

Choosing the appropriate exchange rate and setting up the position is the precondition of profit.

If the opportunity to enter the market is better, the chance of profit will be great. On the contrary, if the timing of entering the market is not proper, it is easy to lose money.

The "stop loss" is a measure to prevent the loss from being too high when the currency exchange rate falls when the position is established.

For example, sell US dollars at 110 and buy yen.

After that, the British dollar rate rose to 115, with a nominal loss of 5 yen.

To prevent further losses from the dollar's rise (the depreciation of the Japanese yen), it bought back the US dollar at 115 exchange rate, sold the yen, and ended its exposure at a loss of 5 yen.

Sometimes traders do not recognize losses, but insist on waiting, hoping that the exchange rate will turn back, so that when the exchange rate falls, it will suffer huge losses.

The timing of "profit making" is difficult to grasp.

When a position is established, when the exchange rate has developed in the direction of its own advantage, it will be profitable to liquidate the position.

For example, when 120 buys us dollars and sells yen, when the US dollar rises to 122 yen, we have 2 yen's profits, so we sell the US dollar, buy back the yen, make us dollar flat, earn yen profits, or earn the dollar profit according to the original amount of yen sold, and earn US dollar profits.

It is very important to grasp the timing of profit. It is too early to make a profit. If the market is too late, the opportunity may be delayed, and the exchange rate will be reversed.

The principle of buying and selling 2. is exactly the same as the principle of stock trading.

Because in the process of rising prices, only one thing is wrong, that is, when prices rise to the peak.

In addition to this, buying at any other point is correct.

When the exchange rate falls, the only buy is right, that is, the exchange rate has reached its lowest point.

Besides, buying other points is wrong.

As a result of buying up when prices rise, only one thing is wrong. But when prices fall, only one thing is to buy the right ones. Therefore, the opportunity to buy profits when prices rise is much greater than that when prices fall.

The principle of "3." Pyramid "overweight" is "Pyramid" overweight. It means that after the first purchase of a currency, the exchange rate of the currency will rise and investment is correct. If we want to increase investment, we should follow the principle of "the quantity of each increase is less than last time".

This will be less and less, such as "Pyramid".

Because the higher the price, the greater the possibility of approaching the peak, and the greater the risk.

At the same time, buying on the rise will lead to an increase in the average cost of the bull, thereby reducing the rate of return.

The 4. principle of buying (selling) in rumor is to sell in real time. The foreign exchange market, like the stock market, often circulated some gossip and even rumors. Some of the news proved to be true afterwards. Some of the information was later proved to be nothing more than rumors, or even a trap caught by the Chuang family.

The practice of a trader is to buy immediately when he hears good news, and immediately profit from the warehouse once the information is confirmed.

Vice versa, when the bad news comes out, sell immediately, once the information is confirmed, it will be bought back immediately.

If the paction is not fast enough, it is likely that the market will be moved to lose or lose the profit opportunity.

5. do not lose money when the principle of overweight, after buying or selling a foreign exchange, when the market suddenly go in the opposite direction, some people will want to increase the code to do it again, it is very dangerous.

For example, when a certain foreign exchange has been rising for a period of time, the trader has been buying up the currency.

Suddenly, the market reversed and plunged down. Traders lost money. They wanted to buy a single price at a low price. The price of the company was low, and when the exchange rate rebounded, the two stocks were closed together to avoid losses.

We must be careful about this overweight practice.

If the exchange rate has risen for some time, you may buy a "top". If you buy more and buy more, but you will never turn back, then the result is undoubtedly a vicious loss.

It is under this psychological condition that Leeson crossed the famous Bank of Bahrain.

The 6. is not involved in the uncertain market activities. When the exchange market is not clear enough and lacks confidence, it is advisable not to enter the market.

Otherwise, it is easy to make a wrong judgement.

7., do not blindly pursue the integer point of foreign exchange pactions, sometimes in order to fight for a few points and make a mistake, some people set up their positions, to set a profit target for themselves, such as to earn 500 or 1000 yuan, etc., always waiting for this moment.

Sometimes the price is close to the target, the opportunity is very good, but just a few points are not in place, it could have closed the money, but because of the original goal, missed the best price in the waiting, missed the opportunity.

8., when the board broke through, the board set up a position board, referring to the bull market. The exchange rate volatility was narrow.

The board is a balance between buyers and sellers.

No matter in the process of rising or falling, the market price will break through and go up or down when the end of the board is closed.

This is a good time to enter the market to establish a position. If the board is a long-term brand, the chance to get a big profit will be greater when the board is broken.