The risk of covering the foreign exchange

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  First of all, the biggest r Whatisforexrebatek of cashback forex What is forex rebateg the position exists when some investors use the wrong method of covering the position: the typical practice is to use the operation method of covering the position in sections, level by level, which is a wrong method because, the average investor has limited funds and can bestforexrebate afford to cover the position several times. In addition, covering a position is a remedy for the previous wrong buying behavior, it should not become a second wrong transaction. The so-called level-by-level covering is to justify the imprudent buying behavior. Therefore, it must be extremely cautious, while tactical covering is mainly to grasp the stage bottom of the stock price, short term strike, and quickly withdraw funds after profit. The risk is also because some investors simply do not have the concept of strategic and tactical positions, or although they understand but confused the use of the two methods, for example: strategic positions require no deep not to fill, no unexpected circumstances after the position is not sold without unsettling, but some investors can not stand the dealers washboard, early to fill the strategic position of chips thrown, the result, although the stock price rose a lot, he could not unsettle and Tactical cover regardless of deep set shallow set can fill positions, but the requirements must be short term timely profit closing, some investors do not understand the technical requirements of tactical cover, often short term into a long line, the cover chips into a hedge chips these are easy to make mistakes when investors fill positions, need to pay attention to overcome Finally, the risk of cover positions also comes from the lack of stop-loss awareness of investors in the operation of cover positions usually Even when the stock price falls below the cover price, there is no need to stop loss, because even if the investor buys at the bottom of the stock price, it is almost impossible to buy at the lowest price. However, there are exceptions, especially when there are major changes in the market environment such as fundamentals or major mistakes in the investors judgment of the market, investors still need to take out the determination to break their backs tactical positions belong to the short term mode of operation, usually before filling the operation Need to develop a stop-loss (or stop-win) plan and stop-loss criteria, in the actual operation to maintain a timely look at the plate, when there are any abnormal changes in the plate, immediately stop loss out of the game, absolutely do not participate in any adjustment in an unknown direction, in order to ensure the safety of funds

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