Foreign exchange trading skills of foreign exchange trader inner workings

Whatisforexrebate 3Browse 0Comments Collection

(1) always set a stop loss, forexrebatenetwork strictly enforced Why stop loss? Many friends bestforexrebate the beginning of the speculative foreign exchange What is forex rebate very careful, so always earn some small money they often earn a few dozen points each time, but let go of a few hundred points of the big cashback forex next time the exchange rate has been very high, he often think so, I want to grasp the big market this time, I do Whatisforexrebate know, the market has almost reached the top of the stage want to earn a few hundred points of mood around him, there are still a few dozen points of space above the market, he preferred to do Long-term, not to earn a few hundred points do not leave the field results not only dozens of points did not earn, but was trapped, not to win against the loss of the market is sometimes so tricky  Remittance friends often have such operations after buying a currency, the exchange rate fell sharply, it hurriedly stop loss out of the exchange rate continued to fall, they are still happy! But a day or a few days, or even a few hours later, the exchange rate suddenly rebounded, rising sharply, so that you can not buy again, and higher than the price of your stop loss if you do not just stop loss, there are profits? So several times later, there is no concept of stop loss, the first few times to taste the sweetness of not stop loss, it is always not stop loss, that the exchange rate sooner or later to return to the price of buying above the level in the trapped a few hundred points later, may not be able to resist, stop loss out of the game so that the first few times to earn a small amount of money are lost, and losses how to stop loss and stop win? When should I stop loss? When do not need to stop loss? When to stop loss firmly? When to stop win? How to set a stop-win level? The most difficult thing to learn in the investment is the stop-loss deeply in the market is the lack of books on how to stop loss is there, but also from a practical point of view to speak clearly to the people of the exchange, only a general concept, and the actual battle is far away  remember I first entered the foreign exchange market, met my elder brother, a once famous trader who had followed Soros in 1992 to attack the pound his first words when he saw me asked: how much are you prepared to lose to stop trading? At that time I clearly remember, think I heard wrong, and asked him to repeat he said sternly: I am asking you, how much are you prepared to lose money to stop trading? My answer was: I came to this market to make money, many people are not in this market to make money? My big brother told me, do forex trading, is an investment to do any investment is to have a sense of risk every industry are people lose money, someone make money, or everyone is Gates in this very high risk industry, no loss of people is not there every person in this market can survive, should first learn how to control the risk, in other words, that is, how to control losses  The main character of the story is a Nanjinger, he did foreign exchange margin trading at the beginning of the capital equivalent to 1 million yuan he kept trading, and soon made his capital more than 10 times when his mother advised him to leave a sum of money, because she knew the speculative nature of the industry and risky but The sons mind was already swollen and he thought he was a wizard in the market, making money as easy as drinking water and not listening to others advice. In 1992, 78 months, he has been holding a long position in the pound, and also at high levels with the money earned a large number of positions held heavy pound in mid-September 1992, for many foreign exchange traders, perhaps hell, perhaps heaven, a man called Soros attacked the pound, and since then a hit he successfully blocked the pound, the pound plunged Britain was therefore forced to withdraw from the European monetary mechanism, the So much so that today when it comes to the pound to join the euro zone, many people still hold different views in the pound fell, this person still stubbornly hold the pound, and that according to the conventional, the currency market fluctuations will not be more than 200-300 points a day, so the dead report on the pound not put, waiting for the rebound of the pound that know, that day the pound could not stop falling wildly in the blink of an eye, he has lost 50% of the funds at this time if he stopped loss still Come on, after all, there are still half of the funds left in the green hills, not afraid of no firewood burning in the case of so much loss, he also reported a fluke mentality, thinking, will not be so, should have rebounded to? Has fallen so much, perhaps in the U.S. plate back up the results he firmly hold the position of the pound not stop loss market does not shift to his will and the exchange rate triggered a new round of decline finally he lost severely, forced to give up because it is also his choice, his account has been completely wiped out & nbsp; (2) not afraid of wrong, only afraid to drag to do the wrong direction to decisively stop or reverse operation & nbsp nbsp; I just started in the industry, the face of the ever-changing, complex foreign exchange market feel very confused, there is a feeling of not being able to start, after a period of experience and the guidance of seniors, only gradually learned from it to forex trading and any other business transactions are not essentially different, are low buy high sell, profit from it but how to profit? The first thing is that the basic analysis and technical analysis is the basis of foreign exchange trading. The basic analysis involves a wide range of economic fundamentals, including both political, military and so on for a wide variety of economic data from various countries, we need to remind our friends that the focus of the data in different periods of market attention is different, and the measurement of the data is good or bad to compare with its expected value. Bad data does not necessarily lead to a decline in the exchange rate, it depends entirely on the market to digest and absorb the degree of data for technical analysis, it is recommended that it is best not to use too many analytical tools, because too many analytical tools are not necessarily good, sometimes there will be contradictory buying and selling signals In addition, I also recommend that friends do not rely too much on the expert buying and selling strategy, the market does not always win, anyone has the time to make mistakes & nbsp nbsp; Secondly, in foreign exchange trading, built on the accumulation of experience is also very important to feel the trend of the exchange rate is nothing but up, down and lateral adjustment, most market participants have their own psychological expectations of the foreign exchange market, in fact, this psychological expectation is the feeling, of course, the feeling is really only imaginable and ineffable authors experience is that the combination of fundamental analysis and chart technical analysis of the results, and Exchange with other market participants (foreign traders) to corroborate their own feelings Therefore, it is recommended that foreign exchange friends may wish to use the media to verify their own judgment of the foreign exchange market strategy to enhance trading confidence  Finally, when trading must act decisively forex trading is only two results right or wrong to enter the market in the right direction to hold a position; the wrong direction, we must take the moment to reduce losses once there A trader, the market analysis is very good, the direction is correct, but the transaction is indecisive, forward and backward, in vain lost many opportunities for profit  (3) dare to lose dare to win, to develop the habit of dare to lose twenty points, dare to earn sixty points  In short, if you make money in the transaction, you can stand up straight, accept peoples appreciation and get financial reward  But if you suffer a loss, you will be able to make money. nbsp; But if you suffer a loss, you will be solely responsible for  In market trading you must have confidence, because one of the most serious of all losses is the loss of confidence in your ability to trade independently and successfully  If you lose confidence in this, in addition to closing out unfavorable positions to limit the exposure of positions that lead to losses, you should probably not do any trading at all  nbsp; The laments of speculators continue, but they appear to be caused by nothing more than careless or poorly timed trades, misjudgment of market trends, lack of understanding of the basic tenets of good strategy, or lack of self-confidence and self-discipline  Serious introspection brings to mind the theme that for overall success, well thought out strategies, workable tactics, and good Finally, the subject of losers and winners is not complete without examining the contradiction between the desire to win and the fear of losing  you rarely see this kind of exploration, but understanding this logic is the key to successful investment operations  I received a letter from an Australian investor I received a letter from an Australian investor who focused on the profitability of trading: I have always done much better with simulated trades than with my actual trades  the reason for this, I believe, lies in the simple fact of which psychology prevails, the desire to win or the fear of losing  (4) control the percentage of risk, and only kill a full position when the direction is very clear   10, 20, 50, 100, 200, 300, 400…… Faced with the dazzling leverage ratio in the foreign exchange market, how do you choose? What is the difference between them?   Engaged in foreign exchange margin trading (also known as foreign exchange leveraged trading), in essence, is engaged in the purchase and sale of contracts  First, the international quotation of foreign exchange are five digits, on the euro for example, the euro / U.S. dollar 1.2800, which represents 1 euro can be exchanged for 1.2800 U.S. dollars when the euro from 1.2800 fluctuations to 1.2801 or 1.2799, fluctuations 0.0001, which is called 1 point  Second, in the international arena, the prevailing basic is this: 1 standard contract worth 100,000 U.S. dollars (100,000 U.S. dollars), a mini-contract worth 10,000 U.S. dollars (10,000 U.S. dollars) a point value is how much? 100,000 USD * 00001 = 10 USD, 10,000 USD * 00001 = 1 USD So whether for 1:20 leverage, 1:100 leverage or 1:400 leverage, 1 point of a standard contract is 10 USD, 1 point of a mini contract is 1 USD  Third, so 100,000 USD / 20 times = 5000 U.S. dollars, 100,000/100 times = 1000 U.S. dollars, 100,000/400 times = 250 U.S. dollars, that is to say, to do a standard contract, if it is 1: 20 leverage, you need to use your account funds 5000 U.S. dollars; if it is 1: 100 leverage, you need to use your account funds 1000 U.S. dollars, if it is 1: 400 leverage, you need to use your account funds 250 U.S. dollars then How much of your account is still active? How much risk can it withstand?   For example, to account funds of $6000, buy 1 euro / U.S. dollar down for example (a point of $10):   1: 20 times the leverage: occupy funds of $5000, account there are $1000 is active, can resist the risk of 100 points, when the market price fluctuations upward loss of 100 points, the occurrence of margin calls, the system will be Forced to close your position (great risk)  1: 100 times leverage: occupy funds of $ 1000, there are $ 5000 in the account is active, can resist the risk of 500 points, when the market price fluctuations upward loss of 500 points, the occurrence of margin calls, the system will be forced to close your position (general risk)  1: 400 times leverage: occupy funds 250 U.S. dollars, there are 5750 U.S. dollars in the account is active, can resist the risk of 575 points, when the market price fluctuations upward loss of 575 points, the occurrence of margin calls, the system will be forced to close your position (risk relative to 1: 20 and 1: 100 times the leverage are small)  we can conclude that: in the account under the conditions of equal funds, do the same The higher the leverage ratio, the smaller the risk of a capital call!   (5) only in the active market situation trading, with the market and for  foreign exchange trading is different from stock trading people in buying and selling foreign exchange, often one-sided focus on the price and ignore the rising and falling trend of the exchange rate when the exchange rate rises, the price is getting more and more expensive, the more expensive the more afraid to buy; in the exchange rate falls, the price is getting lower and lower, the lower the cheaper so the actual transaction often forget to follow the trend In the rising trend of the exchange rate, only one point is wrong to buy, that is, the price has risen to the top when the exchange rate is as if from the floor to the ceiling, can not rise again in addition to this point, any point to buy is right  In the falling trend of the exchange rate, only one point is wrong to sell, that is, the exchange rate has fallen to the lowest point, as if the floor, can not be lower  In the falling trend of the exchange rate, only one point is wrong to sell, that is, the exchange rate has fallen to the lowest point, as if The floor has fallen, can not be lower, in addition, any point to sell is right  Inexperienced investors, after the opening to buy or sell some kind of goods, once you see a profit, you immediately think of closing the money to close the position at a profit seems to be easy, but the time to capture the profit is a learning curve experienced investors, will be based on their own judgment of the exchange rate trend, decide to close the time if If you think the market trend will further develop in his favor, he will be patient, knowing that the favorable and not earn, let the exchange rate as far as possible to their more favorable direction, so that the profits continue a small profit on the close is not the same as seeing good, in the end, it is not good enough to profit less loss more  because of the relationship on the position, often people ask me if there is any good investment subject, I am always happy to share my research with others I am always happy to share my research results with others but I never answer a kind of question, that is, please ask will rise (fall) to where ah?   Whether it is foreign exchange, indices or individual stocks, which for me are unable to answer the question usually I will say I do not know yeah, or up (down) to up (down) can not go up ah hear this answer people will usually have two reactions, the first is to scoff, think my analysis power is just er, otherwise is secretly unhappy, think I have a good idea are not willing to tell others   These two reactions often make me feel that I am not willing to tell others. nbsp; These two reactions often make me helpless First of all, if investors are interested in price forecasters to study the performance of in-depth, I suggest that you can target specific peoples forecasts for statistical results to see his predicted value and the real performance of the difference? What is the average error? What is the probability of being correct?   You can find that the vast majority of price predictions made are inaccurate This has nothing to do with the analysts ability, but the prediction itself is an impossible task A responsible analyst should provide clear assumptions and inferences about where the current market trend is, and then advise the reader to follow the trend  A good analyst guarantees that you will have a higher win rate, but never offers to turn a stone into gold. If you think you shouldnt ask the weather bureau to tell you what time and how much rain will fall today, you shouldnt expect analysts to accurately predict where prices will rise (fall)   Secondly, as a trader, I never set up any pre-set up for the market that is, in the decision-making process of professional operators, should not spend time on predicting the market On, but should put all the effort on the measurement of the real trend above the preset target price area not only can not help, often also make operators face premature factory loss of potential profit opportunities, and even counter-trend operations, incurring serious losses of the consequences  In the system of successful operators at home and abroad, there are clear principles of entry and exit, but rarely see someone can rely on prior prediction of price levels and really make a lot of money for each An operators main concern should be whether he has stood in the same direction as the market trend as long as he continues to check the matter fairly and objectively, then when the market reverses he will not miss  In other words, the ability to accurately predict price levels is not the focus of the operators success or not, a sound entry strategy and operational discipline is the real key those operators who want to be prescient, I respect I respect their courage, but we are pursuing a low-risk, stable and profitable operating strategy As for those who scratch their heads and guess the bottom of the work, or leave it to the stunt masters to play it  Investment analysis is a science, not metaphysics Since this is the case, we must get used to look at it from the perspective of scientific research  (7) no reason to adapt, do not change the strategy that has been set  The foreign exchange market is A quasi-zero-sum market, the so-called zero-sum market is to earn must have lost, win must be equal to the loss however because the foreign exchange market, many institutions and enterprises in foreign exchange transactions are not for profit, such as corporate purchases of some foreign currencies for payment, Japans intervention in the yen exchange rate and so on, these times the motivation of the institutions trading is not exclusively take the exchange rate difference so the foreign exchange market in general is a quasi-zero-sum The market as a quasi-zero-sum market for speculative transactions should be engaged in more opportunities for the people of the exchange, but in fact many investors do not often taste the joy of trading profits  I believe that the reason for this problem in addition to the need for foreign exchange trading technology, drive, trading habits and other factors, professional habits of mind is also an important reason to determine the long-term investors can gain   Many investors are more or less understand some of the ways to analyze the market, these methods have their own, but there will not be a way is universal since the foreign exchange market is a quasi-zero-sum market, then investors use the analysis method if there is no uniqueness and characteristics, then it is difficult to surpass other investors in the market, so it is also difficult to achieve the goal of long-term stable profits   nbsp; Foreign exchange trading analysis of the uniqueness of the actual investor trading experience, this is not easy to learn from books, must be experienced in trading for example, the euro, the pound, the Swiss franc, these European currencies are more sensitive to technical graphical movements, in most cases can be grasped through technical analysis, while the Australian dollar, the yen is vulnerable to the impact of short-term funds and large shocks, this situation again The use of technical analysis of the accuracy of the approach to poor some experienced investors can even experience in the transaction, the same technical analysis of the pattern, may be very high accuracy for the British pound, for the role of the euro is poor again, for example, I think the current RSI (14) indicator in the euros sky chart, the value between 20 and 70 runs, it means that the euro may repeatedly weak late if the euro From the downtrend to long-term uptrend, then the technical requirements of the RSI (14) indicator values in the 30 to 80 to run between the formal confirmation of the euro uptrend established this technical indicator use approach is a relatively high accuracy, but careful investors will find for the British pound, Swiss franc, in the use of this indicator, RSI (14) take the value to be fine-tuned, the accuracy rate It can be seen that the refinement of the analysis method, know when to use, should be used in what currency is the key to improve the accuracy of investor judgment  Now many investors, once the transaction encountered frustration began to doubt whether their own methods are correct, and then change their own methods, choose other methods, this is difficult to improve their technical level and the actual professional investors will be based on the changes in the market to change their views Their own views, and will not easily change their own analysis methods, will only continue to improve and refine their analysis methods

Articles related to this article