There are more and more investors now. If you just invest blindly without any rules, you will probably let your hard-earned money go to waste. Therefore, more and more people pay attention to investment methods and investment strategies, and have their own set of skills in actual combat. Today, the author will share with you how to formulate strategies for foreign exchange speculation?
1. Consider the direction of operation: Investors must first consider clearly the direction of the market, that is, the short-term, medium-term or long-term trend, and then figure out which one they want to operate, and then make a layout. Note: Long-term operations focus on momentum, medium-term operations focus on quantity, and short-term operations focus on breaking.
2. Plan funds: After deciding on the direction of operation, the next step is to plan funds. When planning funds, the most taboo is to put all one’s eggs in one basket. Investors can invest relatively high funds in long-term positions, and short-term positions should not exceed one-third of funds. Reasonable planning of funds plays a decisive role in formulating operation strategies, and I hope everyone will pay attention to this.
3. Reasonable offense and defense: Just like two armies at war, if there is no retreat, it is easy to fight back and the odds of winning are very small. The same is true in investment. Making a strategy is like defending. Only when the defense is strong enough can we attack externally without any worries. Therefore, investors must understand the loss of each transaction before trading, so that they can take it calmly when facing losses later.
4. Set up a stop loss point: The stop loss point will change with the investment stage, and the stop loss point will naturally be different at different investment stages. In the long-term, the stop loss point should have a higher proportion, and the proportion of funds should also be high; the choice of stop loss point for mid-line investment is more technical, based on the current trend line. In addition, investors also need to consider the time stop loss point. The time stop loss point is generally common in false breakthrough trends, and it is relatively difficult to set. However, investors can count the number of false breakthroughs in order to set a time stop loss point in the future.
To sum up, in the foreign exchange market, investors must learn to formulate investment strategies. Only in this way can they deal with various emergencies in the process of foreign exchange speculation and reduce investors’ own losses.
