Operational Differences Between Foreign Exchange Trading And Margin Trading

Many friends can make a good profit when they make a firm offer, but they lose money when they deposit money.

According to our understanding, many of the firm friends will have a basic analysis of the trend, such as analyzing the rise of the euro, and then buying the euro, if the euro is expected to rise, of course, it will continue to hold; but if the euro falls, the general practice is not to liquidate, but to continue to hold.

It is interesting to note that the result is that after a few days, the euro is rising, and it may be too late to start a stop loss.

Therefore, there is such a view among investors in the real market that they do not stop losses, and they are in their hands after buying.

As for the basis of closing positions, many people set their own standards according to their own criteria. For example, they hope to make a profit of 3% or wish to make a profit of 200 points.

In fact, there are many problems in it, and it is also the reason why the margin can not be manipulate with the method of firm disk.

First of all, because it is a firm offer, losses can only be realized until the positions are closed.

However, the margin will be fluctuated and the losses will reach a certain level.

Moreover, the funds used for margin control are often several times or even hundreds of times larger than those invested in capital. Investors in the real market have just moved to guarantee that they are still used to heavy operations.

Secondly, a large proportion of the real investors in the analysis of the trend is based on the fundamentals. As for the timing of admission, there is often lack of training and experience accumulation.

While margin trading is very important to the timing of entry, dozens of points may not be much for a firm offer, but the margin may be a very attractive profit margin.

Therefore, we should pay attention to the detailed account and pay attention to the details of the operation.

Last but not least, the most important idea of stop loss.

The analysis of quotations, the entry points and the entry points all require skill training, which can be seen from books or learned from others.

But stops can only be controlled and experienced by themselves.

Stop loss is the restraint of human weakness in the investment process. After opening the warehouse, the first thing is the loss of the fee and the loss that can not generate profits. The stop loss is the control of the cost.

When profits continue to hold positions, people on the one hand think that the current profit is the biggest. On the other hand, they hope that the profits will be greater in the future. Therefore, they will linger and hesitate between the two sides, and they want to close their bags immediately for security.

Stop loss is the control of greed and fear at this time.

Investors who have just made a pition from firm to margin must be used to stop losses. The core of every operation plan is stop loss. Only by controlling and tolerating small losses can profits grow steadily.