In foreign exchange trading, the basic requirements for profit are capital, technical analysis and a good attitude. Of course, the most basic foreign exchange knowledge must be mastered, and it may also become a factor that affects your profit. However, there are still some foreign exchange speculators who have met the above conditions, but still cannot make profits in foreign exchange market transactions. Then why is this? You may say that it is the technique of trading. How to establish a position in the foreign exchange market to make a profit? The author will reveal it for everyone below.
From the author’s many years of trading, what I have experienced and what I have seen, I found that many foreign exchange speculators will trade in the wrong way without knowing it. The following will give you two wrong trading methods.
For example: 1. Run away after a few points of profit, and wait for death after entering the market, so it is called waiting for death, because it may wait until death. The concept of waiting until death is: the account is dead with less funds; Those with huge funds will wait for a lifetime until the end of their lives
2. Some stop the loss once for the first time, and double the order for the second time. In this way, if you make mistakes several times in a row, you may not be able to trade.
Although many people have been able to avoid the above situation and can grasp the trend of the general trend, they still cannot make a profit. For example, just after the stop loss, it comes back, and before the target price is reached, it turns around and kills the stop loss, making traders at a loss. If traders can think that they can grasp the general trend of the foreign exchange market, please adopt the following trading strategies, which will ensure that you will not lose money.
The key point is that the direction of the foreign exchange market must be well grasped. This is easy to handle. At present, except for the Canadian dollar, it is certain that all are on an upward trend. The short-term callback should also be grasped well. This method of operation will solve the most troublesome problem for short-term traders, that is, the two ends are stopped, that is, the target price is often not reached, but the loss is stopped instead.
Of course, traders must first make it clear that the purpose of foreign exchange is to make profits, and the way to make profits is long-term transactions. After multiple transactions, profits are obtained, rather than to achieve every single win. To repeat the main point:
1. Grasp the general trend well, the iconic price of the general trend turn is your reference point for stop loss, and the difference between this point and the current price is irrelevant.
2. The short-term trend must be well grasped. The short-term callback is an opportunity to re-establish a position, not a time to backhand operation.
3. If the short-term trend is not well grasped, such as after opening a position at 120.50 yen, if you think it is going to pull back at 120.00 and close the position, but it does not pull back and you can’t buy it back, just give up and don’t chase it.
The above is the introduction of how to establish a foreign exchange speculation position. No matter what position you are in, you must understand the reason why you entered the foreign exchange market in the first place, because only in this way can you overcome your greed, stop at your own stop loss position, and you can make good profits of course Even if you lose money, it is acceptable in your heart. Finally, I hope that everyone can have a good understanding of building positions through this article!
