In foreign exchange trading operations, investors must know how to play foreign exchange, and obtain good investment operation concepts through continuous summarization of experience in actual combat transactions. In order to help investors avoid some detours while learning from previous experience, To avoid the mistakes made by the predecessors, the editor collected and sorted out some 10 tips for speculating in foreign exchange.
1. Do your homework
Before formal investment operations, it is necessary to learn relevant international financial theory knowledge such as balance of payments theory and exchange rate determination theory. Of course, it is also necessary to learn some basic methods and operating skills of foreign exchange technical analysis.
2. When you are not sure, wait and see.
Novice foreign exchange speculators do not need to soak in the market every day to operate and trade. When you are not sure whether you need to operate, you can take a short break and carefully observe the changes in the market, because successful investors need to learn to wait for opportunities.
3. Don’t change your decision easily
If you have fully considered and analyzed the pre-established market entry price and operation plan, don’t influence your decisions because of the immediate changes in the exchange rate.
4. Buy up, not down
The trading principle of foreign exchange operation is the same as that of stock trading, and foreign exchange trading also hopes to buy up and not buy down. Just in terms of the probability of profit, buying when the price rises is much larger than buying when the price falls, and the profit will naturally be more.
5. Don’t blindly pursue integer points
In foreign exchange trading, some traders set a profit goal for themselves when establishing a position, for example, to make enough 5,000 RMB or 1,000 US dollars, and began to look forward to the arrival of this moment.
6. Establish positions, stop loss and take profit
Before trading, it is necessary to set up a stop loss operation point, establish a suitable foreign exchange position, stop loss and liquidate the position when a loss occurs, and close the position with a profit when the exchange rate develops in a favorable direction. 7. Establish a position when the market breaks through
Regardless of whether the market is in the process of rising or falling, once the market is over, the market price will break through and go up or down, showing a breakthrough. This is a good time to enter the market and establish a position. If you break through the market and establish a position, the chance of making a big profit will be greater.
8. Pyramid overweight
It means that after the first time a certain currency is traded, when the exchange rate of the currency rises, the amount of additional purchases will gradually decrease, just like the “pyramid” model. The higher the price, the closer it is to the peak of the rise, and the greater the danger.
9. Strictly implement the stop loss point
Due to the relatively high risk in the foreign exchange market, in order to avoid losses in case of investment mistakes, a stop loss point should be established every time the market enters the market. Have the courage to close or reduce positions immediately to avoid losses from expanding.
10. Don’t overweight when losing money. After buying or selling a foreign exchange, when the market reverses rapidly, some traders still want to overweight, which is very dangerous. For example, if a certain exchange rate continues to rise, traders chase up and buy, but the market falls sharply, and there is a risk of losing money. At this time, if you buy more at a low price, you can pull down the exchange rate of the first order, and the exchange rate will rebound When the time comes, the two orders are closed together to avoid losses.
