There are various financial management methods, and no matter what kind of financial management method, investors need to do a good job in fund management. Maximize the utilization rate of funds and obtain the maximum benefits. So, how should we manage funds? Today, the editor will take the management of foreign exchange funds as an example to share with you, hoping to be helpful to foreign exchange investors.
Precious metal investment is more popular in foreign exchange investment, so how should we use fund management?
Everyone knows that precious metals are systematic engineering, which not only requires investors to accurately analyze the market, but also requires investment risk management, fund management, and trading skills. If the investor does not have a sound fund management system, then a transaction failure may lead to the wastage of the investor’s previous efforts. Fund management methods are as follows:
1. Keep the comeback funds, and the loss of each transaction cannot exceed 1% of the total funds;
2. Calculate the reward/risk ratio, and then trade when the reward is 2 to 3 times the risk;
3. The amount of funds for each transaction should not exceed 5% of the total amount;
4. When the loss exceeds 5% of the capital, take a break temporarily, analyze the market trend, change the trading strategy, and never trade retaliatoryly;
5. When trading with short-term price fluctuations, the loss-making transactions should be closed before the end of the trading day; while long-term transactions should determine the closing time according to the economic cycle;
6. Set the stop loss position at all times. For short-term traders, the stop loss position should be set at about 2% of the trading volume, and for long-term trading, the stop loss position should be set at about 7%~10%;
7. Investors trade in the direction of the trend. In an upward trend, they only look for opportunities to buy orders and close their positions when the price rises; then, in a downward trend, they only look for opportunities to sell orders, and they also close their positions when prices fall;
The above content is the method and skill of fund management in foreign exchange financial management introduced by the editor and you. I hope this article can be helpful to you.
