The entry timing of short-term traders is more important than that of long-term traders. For the lack of sufficient capital to cope with the market callback to small funds, it is impossible to cope with the market adjustment trend by setting a loose stop loss range. For traders with small funds, in order to control risks and filter out noises, they must find a better time to enter the market, and they need to work hard on the time to enter the market.
The foreign exchange market has a large capacity, and many people who start out with technical trading strategies are equivalent to traders with small funds. Short-term foreign exchange trading is based on mastering foreign exchange knowledge, and there are generally four entry methods. The entry method is mainly based on adjustment entry and breakthrough entry. Adjustment entry is an entry against the trend, so generally intervene at the end of the adjustment when there are signs of ending. The method of entering the market at the end of the adjustment is mainly to enter the market aggressively. The characteristic of this type of market entry is to start planning and layout for the breakthrough trend when the market is still in the range trend.
In the actual operation, if we expect that the future trend will break through upwards and get out of the unilateral market in the later stage, we can intervene when the market is still in the shock range. The specific time to intervene is at the end of the shock trend, and the specific access price is the shock the lower edge of the interval. On the contrary, if short, the specific intervention price is the upper edge of the shock range.
The second way to adjust the intervention at the end of the period is a conservative entry strategy. After the exchange rate breaks through upwards, it is not eager to intervene, but waits for a retracement of the market. This price behavior can show us the effectiveness of the breakthrough, and the lower resistance becomes support reliability. For small funds, it is more reasonable to adjust the entry at the end, which can effectively avoid the “shuffling” process.
Practical case: The picture shows the exchange rate of the Australian dollar and the US dollar. After the low point of 0.8675, the short-term sideways arrangement, the aggressive entry of the adjustment will choose to enter the market decisively on February 4, 2014 when the Dayang line crosses the 4-day moving average. .
Conservative entry strategy, will choose cautiously, the exchange rate began to rise, fell back on February 27, stepped back on the 30-day line, and then continued to rise on the small positive line, establishing an upward trend. Prudent investors will choose here after many considerations Enter the market and take profits conservatively.
