Remember the "Eight Notices"
1, there must be "iron discipline"
The so-called "iron discipline" means that you must set your own stop loss point. If you want to be long-term, the stop loss can be wider, and if you want to be short-term, the stop loss should be narrower.
2. Buy up and don't buy down, keep up with the general trend.
Trend is the best friend. You must follow the trend and never operate against it. Foreign exchange trading, like stock trading, would rather buy up than buy down. Because when the price rises, the chances of buying profits are much greater than when the price falls.
3. "Pyramid" plus code
"Pyramid" overweight means that after buying a 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 "the amount of holdings is less than the last time".
4. Buy (sell) when it is rumored, and sell (buy) when it is confirmed.
The foreign exchange market, like the stock market, often circulates some news and even rumors. Some news proved to be true afterwards, and some news proved to be just rumors afterwards. The best way for traders is to buy as soon as they hear the good news, sell as soon as they confirm the news, and vice versa.
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. If the exchange rate has been rising for some time, you may buy one. If you buy more and more, continue to increase the price, but the exchange rate is gone forever, then the result is undoubtedly a vicious loss.
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 blindly pursue integer points.
In foreign exchange transactions, sometimes everything is lost in order to win a few points. Some people set a profit target for themselves after opening positions, such as earning enough US$ 200 or 500 yuan RMB. Sometimes the price is close to the target, and we could have collected the money even, but because of the original goal, we missed the best price and missed the opportunity while waiting.
8. Open positions when the market breaks through.
When the bull market is temporarily in a state of balance, whether it is in the process of rising or falling, once the market is over, the market price will break through the mark, up or down, which is a good opportunity to enter the market to open positions.
Make a reasonable opening plan according to the "5W" principle
Recently, one of the main characteristics of the international foreign exchange market is that the volatility decreases but the trend fluctuates. In the face of frequent fluctuations in the foreign exchange market, it is often necessary to draw up a reasonable trading plan at the opening. According to the five "W" principles, a trading scheme with reasonable operation and clear thinking emerges.
1 and "w" are "who", that is, the currency of the transaction is determined first. It seems that this is an easy task. There are only two currencies in the transaction. You already have a currency in your hand, and then you can choose one of the currencies provided by the bank. First of all, according to your personal situation, try to choose the currency operation you are familiar with. Second, choose a currency that is active recently.
2. "W" is "when", which is to determine what kind of trend you are operating, whether it is a long-term trend, a medium-term trend or a short-term trend.
Different trend operations have different strategies. Medium-and long-term trends are generally suitable for entering the market at the initial stage of market start-up, with larger stop-loss points, while short-term trends pay attention to fast-forward and fast-out, with fewer stop-loss points, and pay attention to small and broad. The most common mistake investors make is to confuse the concepts of long-term and short-term. This situation is very dangerous, and it will often turn into a speculative and unchangeable investment, just like an careless stockholder.
3. "W" is "where", that is, at what price to buy or sell. The most common way is to choose a consolidation market with a large space, sell on the upper track of the closing area and buy on the lower track of the interval, and set the stop loss slightly higher than the upper track or slightly lower than the lower track. At the same time, once the original interval is effectively broken, everyone can follow suit.
4. "W" is "Why", which means that investors should always be firm in their reasons for buying or selling a certain currency. Do you value the fundamentals of money or a major technological breakthrough? Do you pay more attention to the role of international hedge funds or the merger and acquisition of multinational companies? When the factors leading to admission no longer exist or even develop in the opposite direction, no matter whether it is a small profit or a loss at that time, we should enter the admission immediately without hesitation.
5. "W" is "what", that is, how to set the profit point and stop loss position. Generally speaking, if we buy a currency, the profit point is set at a resistance level slightly lower than that level, and the stop loss point is set at a key support level. In addition, it is worth pointing out that the ratio of stop loss to profit is very particular. Generally speaking, the profit point and stop loss point are at least 1: 1.