1, determine the revenue target. In the process of speculating foreign exchange, we should decide what kind of operation strategy to adopt according to the income target we hope to achieve, and decide which types of transactions can and cannot be done.
2. Establish your own trading style. In foreign exchange trading, many investors just blindly participate in the transaction, ignoring their own characteristics, because their own mentality and personality characteristics are also the key factors to determine the success or failure of the transaction. Knowing one's own characteristics, understanding one's own risk tolerance and establishing a trading style are also the keys to help gain profits.
3. Form your own analysis system. There are various methods to analyze foreign exchange transactions, and many investors have learned a lot, but not all of them are proficient. In a mature and stable profit system, its own unique analysis system should be essential. Determine the medium-term direction, medium-term key technical support and resistance, short-term technical support and resistance and strength of each exchange rate with an analysis method suitable for you. According to the understanding and experience of analytical knowledge, the importance of various analytical methods is determined.
After clarifying the importance of analytical methods, according to the principle that short-term is subordinate to medium-term, investors can determine the support level and resistance level of mid-line and short-term currencies according to different time periods, and determine the strength of each support level and resistance level according to the methods used and the number of methods used, so as to draw a conclusion. In trading, investors in the early stage should verify their analysis methods more, because once the analysis system is formed, it should not be changed.
4. Determine the characteristics of the market. An effective grasp of market conditions can undoubtedly increase our profitability, such as market trends, support and resistance levels, and strength. Through the analysis of these indicators, we can determine the trading strategy and evaluate the trading risk.
5. Effectively manage funds. According to the strategy of foreign exchange and the strength of support and resistance, the profit-loss ratio of the transaction is evaluated through this analysis result, so as to carry out effective fund management.