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How can programmed trading reduce losses?
Programmed trading reduces beginners' losses

In foreign exchange investment, computers greatly simplify the trading process, and computer systems provide traders with the most intuitive chart analysis and trading status. Since the beginning of this year, great changes have taken place in the trading situation of various exchanges, and short-term intraday trading accounts for the vast majority. It is very difficult for a beginner to make a profit. In order to survive in the foreign exchange market, it is the most important thing to manage funds and reduce losses. The author takes the intraday band as an example to discuss how to use programmed trading to reduce the loss of beginners.

most investors who have just entered the foreign exchange market know the importance of stop loss and risk control theoretically. However, theory is not equal to practice. At the beginning, investors may do it in small quantities, losing money and earning money. Suddenly, after buying the contract one day, the market of < P > fell, but they always felt that they could go up, so they kept adding positions to buy in order to spread the cost. However, foreign exchange prices did not rise because of their own purchases. On the contrary, they fell all the way. In the end, they had to reluctantly cut their positions and found that they had caused huge losses. After that, I reflected on myself and began to be cautious, but soon history repeated itself, so many people were eliminated by the market in this cycle of repeated history. Taking advantage of the trend, stop loss and risk control are the three basic principles of the foreign exchange market. Only by understanding the trend can we take advantage of the trend. Let's take intraday wave as an example. The daily K-line is a red entity and can be considered as a rising market today, while the daily K-line is a green entity and can be considered as a falling market today. When we determine today's trend, we can use programming to limit beginners' trading behavior. For example, in a rising market, traders can only open more orders, while in a falling market, they can only open empty orders.

stop loss is the most frequently heard term in the foreign exchange market, and it is the only effective way to avoid all wrong expansion. However, it is difficult for many people to stop loss in time, and some people not only do not stop loss when they should stop loss, but add orders in heavy positions. Unwilling to stop loss is due to indecision and luck. The biggest advantage of computer is rationality, without human greed and fear, so stop loss and take profit can be achieved completely by programming. At present, there are condition orders and stop-loss and profit-taking orders designed by the principle of price triggering in domestic trading software. Investors who have just entered the market need to develop a good trading habit and place a stop-loss protection order at the same time as opening positions. For beginners, traders with stop-loss habits have stronger vitality than traders without stop-loss.

one of the most common problems that beginners encounter is position control. In the face of temptation, many investors can't see the potential risks, and they are desperate to increase their positions. As a result, they are forced to go out as soon as there is risk. This is caused by greed. Therefore, for beginners, it is necessary to make a restriction on the system, such as setting the varieties that customers can trade and the maximum quantity of each variety on the system. Of course, it is necessary to train customers in advance to make them understand the interests, and then make settings to limit their transactions, so that customers can avoid irrational jiacang behavior during the transaction.

In fact, many weaknesses of human nature can be objectively limited by programmed trading. It is a feasible way to help beginners overcome some of their weaknesses, enhance the survival ability of investors, cultivate more excellent customers and enhance the comprehensive competitiveness of companies through programmed trading.