Beginners learn patience, step by step, do not rush to open real trading account, first through the simulated trading learning and familiar with basic knowledge, at the same time, in the process, develop operating strategies and patterns of the individual, when your master relevant basic knowledge and skills to wager a profit to wager, to open a real account for firm operation.
Here to share some basic knowledge of the introduction of foreign exchange, for foreign exchange beginners to learn the trade?
The exchange market is the largest financial market in the world.
Trading takes place almost 24/7, and the volume is huge, estimated to be in the trillions every day.
That is larger than the value of all the world’s stock markets combined.
Foreign exchange markets are not centralized. They are over-the-counter transactions where buyers and sellers are linked by telephones, computers, fax machines and other real-time communications.
The market averages about $3 trillion a day, according to the latest statistics from the International Settlements Group.
Where do foreign exchange transactions take place?
Foreign exchange trading does not take place on a specific exchange. Today most of the trading in the foreign exchange market takes place in a clearing system between groups and dealers to their clients.
Who is involved in the foreign exchange market?
The participants of foreign exchange market mainly include central banks, commercial groups, non-group financial institutions, broker firms, dealers and large multinational enterprises.
They trade frequently and for huge sums of money, with each transaction running in the millions or even tens of millions of dollars.
According to the purpose of trading, participants in foreign exchange can be divided into investors and speculators.
How is it decided?
The value of a currency is influenced by economic and political factors, such as inflation, political stability, and other relevant economic indicators. Governments sometimes intervene in the foreign exchange market.
In addition, a large number of buy/sell orders can also affect the exchange rate.
But because foreign-exchange markets are so heavily traded, the value of a currency cannot be manipulated by a single speculator.
What are day trading and overnight trading?
If AN OPEN POSITION IS CLOSED BEFORE THE CLOSE of TRADING in New York (approximately 5:00 AM Beijing TIME), THE TRADE IS CONSIDERED intraday.
If the positions are not closed before the close of trading in New York that day, they are called overnight trades and may be charged or paid overnight interest.
Fundamental analysis of Foreign Exchange Fundamental analysis refers to the study of the core factors affecting a country’s economy and its changes. It aims to predict the changes and market trends in a certain economic cycle by analyzing a series of economic indicators, government policies and events.
Fundamental data not only tell us about the current market conditions, but more importantly, it can help us predict the future development of the market.
Some people divide forex traders into two groups: technical and fundamental.
In fact, the line between the two is blurring.
When using fundamental analysis, we should always pay attention to the price fluctuation signals given by technical charts. Meanwhile, technical analysis should not ignore a series of factors affecting the exchange rate changes, such as the upcoming major political events and economic data release.
The factors affecting exchange rate change involve many aspects such as society, politics and economy.
It is not easy to remain sensitive to highly dynamic market fundamentals, but at the same time you will find that your understanding and awareness of dynamic global markets will improve dramatically as you study market fundamentals.
Fundamental analysis can be very effective in predicting economic movements, but not necessarily for exact market prices.
For example, analyzing an economist’s forecast of future gross domestic product or employment reports can give us a relatively clear picture of the overall state of the economy, but to obtain specific trading strategies such as entry and exit points, we need to rely on more precise technical analysis methods.
Foreign exchange traders who use fundamental analysis often use certain models of analysis to arrive at specific trading strategies.
These models often use a large number of empirical data and early core economic data to predict market behavior and future currency value.
Traders then use this information to take advantage of market opportunities and execute trades.
There are many different styles of traders in the forex market, as well as different models of analysis used by each.
Two traders can come to very different conclusions from the same data.
That makes it all the more important to scrutinize fundamental data for your trading style and expectations.
What is?
“Individual” refers to the freely convertible foreign exchange (or foreign currency) transactions conducted by individual customers in banks.
Individual foreign exchange trading has the cent of solid dish and virtual dish commonly.
At present, according to the relevant policies of the state, we can only carry out solid foreign exchange trading, but we can not carry out virtual foreign exchange trading.
Personal foreign exchange trading business belongs to the real deal, the purchase and sale of currency must be actually paid.
When dealing with individual foreign exchange trading, the bank requires the customer to have sufficient cash or the amount of currency sold in the foreign currency account, and the customer is not allowed to overdraft.
Make use of financial budget, remember to use the necessary living money as a wager on capital wants to be a fire, first of all should have sufficient investment capital, if there are any losses don’t influence your life, remember to use your life money as trading capital, capital pressure will mislead your investment strategy, increase transaction risk, and cause greater error.
Make GOOD USE OF FREE accounts, learn to FRY FOREIGN EXCHANGE beginners to learn patiently, step by step, do not rush to open real trading accounts.
Don’t compare yourself to other people, because each person needs different time to learn and gain different things.
In THE PROCESS OF LEARNING FOREIGN EXCHANGE SIMULATION TRADING, YOUR MAIN GOAL IS to DEVELOP YOUR personal OPERATION strategy AND style. When your profit probability increases, your monthly profit increases gradually, indicating that you are ready to open a real trading account for foreign exchange.
Stir-fry FOREIGN EXCHANGE CANNOT DEPEND ON LUCK ONLY WHEN YOUR PROFIT TRADES NUMBER THAN THE LOSS TRADES NUMBER EVEN MORE, AND YOUR ACCOUNT TOTAL FOR THE STATE OF THE INCREASE, THAT SAYS YOU HAVE FOUND THE TRICK TO DO STIR-FRY FOREIGN EXCHANGE.
However, if you are 5 trades losses of $2000, profits of $3000 in another deal, while your account is to increase the total situation, but don’t self-righteous, it may be just your luck or you risk at maximum volume trading port number to win, you should be careful operation, timely adjust operation strategy.
It is not enough to create profitable results in forex simulation trading. It is equally important to understand the causes of the gains and to develop your own personal strategies for making profits.
Trading intuition is important, but it is not acceptable to trade on intuition alone.
Wager to use stop loss orders to reduce foreign exchange risk when you do the deal should establish the scope of tolerable loss at the same time, make good use of stop-loss trades, just a huge loss, loss of scope in accordance with the account money, the best set of 3-10% of the total in the account when loss amount has reached your tolerance, don’t look for excuses to try to wait for rotary, put all your eggs in one basket
Should immediately CLOSE THE position, even after 5 MINUTES THE market really turns, do not REST, because you have removed THE market continues to turn bad, the risk of infinite losses.
You need to develop a trading strategy, remember that you control the trade, not let the trade control you and hurt yourself.
Learn TO EXECUTE YOUR TRADING PLAN THOROUGHLY. Don’t MAKE EXCUSES TO REVERSE YOUR DECISION. The BIGGEST mistake in trading that destroys everything is when YOU start making excuses not to liquidated your position (after YOUR loss has grown to $2,000 for a single position), thinking that the market will turn around soon.
When you continue to think about this, you have no intention of ending the losing position, and you are just waiting for the market to turn around.
Market change is relentless, not because of anyone’s infatuation and turn around.
When losses of more than $1,000 or more, traders will be forced to unwind their positions, traders not only lost money but also lost their energy, anything else can make them lose confidence and decisions, the reason for this mistake is very simple – greed.
A loss of $200 won‘t prevent you from recouping your losses, and you may be able to make more money on your next trade, but a loss of $2,000 to $3,000 on one or two trades will ruin your chances of making more money, and that loss is hard to recoup.
In order to avoid the production of this fatal error, must remember a simple rule – do not let the risk exceed the original has been set tolerable range, a loss has been set to the original limit, do not hesitate to close the position immediately!
Mistakes and losses are inevitable. Don’t blame yourself. The important thing is to learn from them and avoid making the same mistakes again. The sooner you learn to accept losses and learn from them, the sooner you can make gains.
In addition, learn to control your emotions. Don’t jump for joy when you make $800 or hit the wall when you lose $200.
In trading, the less personal you are, the better able you are to see the market and make the right decision.
Be calm about gains and losses. Understand that traders don’t learn from gains, they grow from losses. When you understand the cause of each loss, you are one step closer to making a profit because you have found the right direction.
Stir the foreign exchange to insist on making foreign exchange transaction records, constantly review the daily detailed record of the factors that determine the transaction, whether there is any event news or other reasons for you to make a trading decision, do the trade after the analysis and record the profit and loss results.
If the result is a profitable trade, it means that your analysis is correct. When similar or the same factors appear again, your trading record will help you make the right trading decision quickly.
Of course, a record of losing money will help you avoid making the same mistake again.
You can’t keep all your trading experiences in your head, so this record will help you improve your trading skills and find out where you went wrong.
Fry FOREIGN EXCHANGE TO BE SURE TO FOLLOW THE TREND OPERATION, DO not GO against the trend to remember the old general rules of the market: loss position should terminate as soon as possible, profit position can hold how long to put how long.
Another IMPORTANT RULE is not TO allow losses TO occur ON PREVIOUSLY profitable positions. In the face of sudden market reversals, do not allow a previously profitable position to become a loss rather than liquidate a position that does not make a profit.
Foreign exchange losses do not have to be anxious to turn over the gambler mentality in the face of losses, remember not to open a new position in the opposite direction to turn over, which will often only make the situation worse.
Only IF you THINK THE original prediction and decision are completely wrong, you can close the loss position as soon as possible and open a new position in the opposite direction.
Don’t play a guessing game with the market. It’s better to miss a trade than make a loss.
The sooner you get into the swing of things, the sooner you can develop the appropriate skills to apply to real trading.
It IS IMPORTANT TO TREAT FOREX SIMULATIONS AS IF THEY WERE REAL TRADES BECAUSE THE COMBINATION SKILLS YOU DEVELOP ARE THE KEY TO YOUR TRADING SUCCESS.
Introduction to wager on the timing operation should be taken in the early years of the simulated trading of foreign exchange, to grope for and understanding of various currencies to change at the beginning of the simulated trading of foreign exchange traded in the same time every day, it helps to understand all kinds of currency movements, because each currency at different times have different changes every day, it’s hard to understand the change situation at the beginning,
Timing operations make it easier to find out the characteristics of a particular currency.
At the beginning and end of the day, you should read the market news and watch the currency chart to help you make the right trades.
