Practical skills of foreign exchange trading operation
1. Learn to open positions, stop losses, lighten positions and make profits in foreign exchange accounts.
"Opening a position" means opening a position, also known as exposure, that is, buying one currency and selling another at the same time. The currency bought after the opening is called long, and the currency sold is called short. Choosing the right exchange rate level and the timing of opening positions is before making profits. If the timing of entering the market is good, the chances of profit will be great; On the other hand, if the timing of entering the market is improper, it is prone to losses.
"Stop loss and lighten the position" is a stop loss measure taken to prevent excessive losses when the exchange rate of the currency held falls (the currency held depreciates) after the position is established. For example, sell dollars and buy yen, and the exchange rate is 1 10. Later, the exchange rate of the pound against the US dollar rose to 1 15, and the nominal loss has reached 5 yen. In order to prevent the continuous rise of the US dollar (that is, the depreciation of the Japanese yen) from causing greater losses, we repurchased the US dollar and sold the Japanese yen at the exchange rate of 1 15, ending the exposure with a loss of 5 yen. Sometimes traders do not admit losses, but insist on waiting, hoping that the exchange rate will turn back, so that when the exchange rate falls blindly, it will suffer huge losses.
The timing of "profit" is difficult to grasp. After opening a position, when the exchange rate has developed in a favorable direction, you can close your position and make a profit. For example, buy dollars and sell yen at 120; When the dollar rose to 122 yen, two yen were already profitable, so I sold the dollar and bought back the yen to level the dollar position and earn the yen profit. Or even take out the original amount of selling yen and earn profits in dollars, which is flat profit. It is very important to grasp the timing of profit, because the lottery is too early and the profit is not much; Too late to draw, it may delay the opportunity and reverse the exchange rate trend.
2. The principle of buying up and not buying down
The principle of foreign exchange trading is exactly the same as that of stock trading. It is better to buy up than to buy down. Because there is only one mistake in the process of price rise, that is, when the price rises to the peak. In addition, any other point of purchase is right.
When the exchange rate falls, only one thing is right, that is, the exchange rate has fallen to the lowest point. Besides, it is wrong to buy it at other points.
Because there is only a little mistake in buying when the price goes up, and only a little right in buying when the price goes down, the chance of making a profit when the price goes up is much greater than when the price goes down.
3. "Pyramid" plus code principle
"Pyramid-style" holding means that after buying a certain currency for the first time, the exchange rate of the currency rises and the investment is correct. If you want to increase your investment by increasing your holdings, you must follow the principle of "increasing your holdings less than last time". In this way, the number of consecutive purchases will be less and less, just like a pyramid. Because the higher the price, the greater the possibility of approaching the peak of the rise and the greater the danger. At the same time, buying when rising will increase the average cost of bulls, thus reducing the rate of return.
4. The principle of buying (selling) when rumors, but selling (buying) in real time.
Like the stock market, some gossip and even rumors are often circulated in the foreign exchange market. Some news proved to be true afterwards, and some news proved to be just rumors, even a trap deliberately laid by the dealer. The trader's practice is to buy as soon as he hears the good news, and make a profit as soon as the news is confirmed. On the contrary, when bad news comes out, sell it immediately, and once the news is confirmed, buy it back immediately. If the transaction speed is not fast enough, it is likely to lead to losses or missed profit opportunities due to market changes.
5. Don't overweight when losing money.
After buying or selling a sum of foreign exchange, when the market suddenly moves in the opposite direction, some people will want to increase their positions, which is very dangerous. For example, if a foreign exchange keeps rising for a period of time, traders will chase up and buy the currency.
Suddenly, the market reversed and plunged downward. When traders see that they have lost money, they want to buy a single order at a low price in an attempt to lower the exchange rate of a single order. When the exchange rate rebounds, they will close their positions together to avoid losses. You should be especially careful about this overweight practice.
If the exchange rate has been rising for some time, you may buy a "top". If you keep buying and raising prices, but the exchange rate never looks back, then the result is undoubtedly a vicious loss. It is in this kind of psychology that Leeson brought the famous Bahrain Bank.
6. Do not participate in uncertain market activities.
When you feel that the trend of the foreign exchange market is not clear enough and you lack confidence, it is better not to enter the market. Otherwise, it is easy to make a wrong judgment.
7. Don't focus on integer points.
In foreign exchange trading, sometimes things will go wrong in order to win a few points. Some people set profit targets for themselves after opening positions, such as earning enough US$ 500 or RMB 65,438+0,000, and wait for this moment in their hearts. Sometimes the price is close to the target and the opportunity is good. Just a few points are not in place. I could have closed my position and collected money, but because of my original goal, I missed the best price and the opportunity.
8. Open positions when the market breaks through.
The market refers to a bull market, and the exchange rate volatility is narrow. The market is a sign that buyers and sellers are evenly matched and temporarily balanced. No matter in the process of rising or falling, once the market is over, the market price will break through the barrier, up or down, and there will be a breakthrough. This is a good opportunity to enter the market and open positions. If the market is bull cowhide, the position established when breaking through the market has a greater chance of making a big profit.