The seven basic rules of speculation
What are the foreign exchange investment rules? When investing in foreign exchange, many investors do not understand some basic knowledge and skills. In particular, mastering the basic rules will help you in your foreign exchange investment. Let’s take a look at what are the foreign exchange investment rules.
- When the price trend line is on the average line, the price decline does not fall below the average line and immediately reverses the rise, which is also a buy signal.
- When the price fell below the average line, but immediately rose back to the average line, the average line still maintained an upward trend, and it was also a buy signal.
- When the average line gradually shifts from falling to trading or rising, and the price breaks above the average line below the average line, it is a buying signal. When the price suddenly plunges, falls below the average line, and stays away from the average line, it may rebound. Also for buying signals.
- When the average line gradually changes from rising to trading or falling, and the price falls below the average, it is a selling signal.
- When the price suddenly rises, breaks the average line, and stays away from the average line, it is likely to rebound and fall back, which is also a sell signal.
- When the price trend line is below the average line, the price rise does not break the average line and immediately reverses the decline. It is also a sell signal.
- When the price broke above the average line, it immediately fell back below the average line. At this time, the average line remained in a continuous downward trend and was also sold. (炒炒chaohui.org)
How much do you know about the speculation skills?
How much do you know about foreign exchange investment skills? Nowadays, investment needs to have certain investment skills in order to better stimulate foreign exchange. Today, the author summarizes some of the better foreign exchange investment skills for you, and I hope to help you.
- The opinions of others are not implemented: this is not to advocate arbitrariness. It must be known that only you will be responsible for your investment results. When you have grasped the direction of the market and have a basic decision, don’t change the decision easily because of the influence of others. Sometimes the opinions of others will be very reasonable, which will prompt you to change your mind. However, afterwards, you will find that your decision is the most correct. Therefore, the opinions of others are always only references, and their opinions are the decision to buy and sell.
- When you are not sure, wait and see: investors do not have to enter the market every day. First-time entrants are often keen on entering the market, but successful investors will wait for opportunities. When they enter the market, they will be confused or uncertain. First leave the city, temporarily hold a wait-and-see attitude.
3, appropriate stop buying and selling: day-to-day transactions may make your judgment gradually slow. A successful investor once said: Whenever I feel mental state and judgment efficiency is less than 90%, I can’t make money, and when my state is lower than 90%, I start to eclipse. At this time, I will Will put everything down and go on vacation. A short break from the market can make you re-recognize the market, re-recognize yourself, and help you see the direction of future investment. Remember, for a long time in the forest, no trees.
- In the face of adversity, leaving the city “rest”: Because investors are involved in the gains and losses of personal interests, the spirit is in a state of extreme tension for a long time. If you are profitable, there is still a sense of satisfaction to comfort you; but if you are in adversity, you lose money, and even make unnecessary mistakes, you should pay attention to it, don’t be swelled, lose your sobriety and calmness. The choice is to leave everything behind and take a break from the city. When the rest is over, the temporary profit and loss has passed, and the bloated mind has been calm and the thought burden has been removed. I believe that the efficiency of investment will be improved. There is a saying, “The general who will not rest is not a good general.” He does not know how to recuperate, and it is impossible to break the enemy and pull the city.
5, patience is also an investment: the investment market has a motto that “, patience is an investment” but believe that few investors can do this, or really understand its meaning. For those engaged in investment work, they must cultivate their own good endurance and endurance. Patience is often a “multiplier” of investment success, and the final result is negative. Many investors, not their low analytical ability, nor their lack of investment experience, but lack of endurance, leading to premature buying or selling, resulting in unnecessary losses. Therefore, every investor involved in the foreign exchange market should realize from their own consciousness that patience is also an investment.
6, the past price, let him go: “past price” is often a psychological barrier that is quite difficult to overcome. Many investors are affected by past price points, resulting in incorrect investment judgment. Generally speaking, after seeing the high price, when the market falls back, it will feel quite uncomfortable for the new low price. At that time, even though various analyses show that the market will fall again, the market investment climate is very bad, but investors Before these new low-price levels, instead of selling the goods they own, they will feel very “low” and have the urge to buy. As a result, they will be firmly caught after buying. Therefore, investors remember that the “past price” will let it pass.
In order not to be swept away by the market, the necessary skills to learn are indispensable. Forex investment has the same investment skills as other investments. Here are some simple tips for your reference.
Don’t overdo it
One of the principles to be a successful investor is to keep 2 to 3 times more funds to cope with fluctuations in price. If your funds are not sufficient, you should reduce the sales and purchase contracts held by your hands. Otherwise, you may be forced to “shang up” to make money because of insufficient funds, even if you prove your vision accurately afterwards.
Good at waiting for opportunities
Investors do not have to enter the market every day. First-time entrants are often keen to enter the market, but successful investors will wait for opportunities. When he becomes doubtful or uncertain, he will leave the market first and wait and see.
Don’t worry about a few things
In foreign exchange trading, don’t blindly pursue integers when making a profit. In actual operation, some people set a profit target after establishing a position. For example, if they want to earn 200 dollars and then leave, they are always waiting for this moment.
After the profit, sometimes the price is close to the target. At this time, the chance of profit-making is very good, but only a few points are still not in place. It was originally possible to collect the money in a flat, but it was due to the original goal and missed the most in the waiting. Good price, missed opportunity. Remember, it’s not worthwhile to make a mistake in order to fight for a few points.
Don’t expect the lowest price
Generally speaking, after seeing the high price, when the market falls back, it will feel quite uncomfortable for the new low price that appears. However, even though various analyses show that the market will fall again, the market investment climate is very bad, but investors are in these Before the new low price level, not only will not sell the foreign exchange held by them, but also feel that the price is very low and there is an impulse to buy, and the result is firmly stuck after the purchase. Remember, “past price”, let it go thoroughly!
Focus on opportunities in the market
The board refers to the narrow fluctuation of the market price, the trading force is evenly matched, and it is temporarily in the state of confrontation and sawing. Regardless of the market in the rising market or the trading situation in the falling market, once the trading session is over and the resistance or support level is broken, the market price will break through and break through.
For experienced investors, this is a good time to enter the market to establish a position. If the board is a long-term gateway, the position established when the board is broken will be abundance.
Strict execution of stop loss points
Many investors believe that there is no risk in foreign exchange trading. When the exchange rate rises, they will throw it and earn the difference. When the exchange rate falls, the money will be saved regularly and earn interest. As long as there is interest, it will always make up for the loss, and it will take a long time.
But sometimes the compensation for interest is just a drop in the bucket compared to the loss of investment. It doesn’t make much sense. Just as the euro was just around the surface, many people are optimistic about its prospects, buying euros at a price of 1.13 yuan, but the euro has entered a slow decline, the lowest fell to about 0.82 yuan, and fell It is more than two years.
If such losses are to be covered by interest, it may take at least seven or eight years. Therefore, a stop loss point should also be established when investing in foreign exchange, and this stop loss point must be strictly enforced.
Set a stop-loss point. Once the market reverses, the exchange rate should fall to the stop-loss point and be brave enough to cut the meat. This is a very important investment skill. Due to the high risk of the foreign exchange market, in order to avoid losses caused by investment mistakes, we should set a stop-loss point every time we enter the market, that is, when the exchange rate falls to a predetermined price, it may fall. When the transaction is settled immediately.
In this way, even if the loss occurs, it is limited, so that the loss will not be further expanded, and even the blood will not return. Because even if the meat is cut for a while, the investment cost is still there, leaving the green hills, not afraid of not burning wood.
Market price reversed, immediately Kamakura
Sometimes trading with the city, but when the market is nearing the end, it is necessary to note that once the reversal occurs, if the situation is not correct, it is necessary to counterattack. For example, after buying in a long market, the market plunged. Don’t panic at this time, it’s best to reflect on it. If it can be determined that the current situation is a reversal, it is necessary to immediately close the position and counterattack.
It is not advisable to follow up when you are in a hurry
In the foreign exchange market, the sharp rise or fall of prices will not rise or fall like a straight line. If it rises too fast, it will always adjust. If it falls too fast, it will rebound. The extent of adjustment or rebound is more complicated and is not easy to grasp. Therefore, after the exchange rate has risen by two or three hundred or five hundred and six hundred points, it is necessary to be extra cautious. It is better to wait and see, and it is not appropriate to follow up.
Compulsory courses before entering the market: first learn the expertise of speculation
Many people do foreign exchange because they see other people making foreign exchange and make money. They also want to get a share, so they follow the foreign exchange market. However, because I don’t know about the foreign exchange market, I don’t know how to make specific decisions, just follow others.
I don’t have a detailed understanding of the form of foreign exchange, and I am not fully prepared for it. I just want to make big money. If you are dealing with foreign exchange with this attitude, I am afraid that it will suffer sooner or later. Because doing foreign exchange also requires investors to have a certain understanding of foreign exchange in advance, foreign exchange also requires a certain amount of professional knowledge.
If you are a beginner in the currency market, you must be patient, step by step, and don’t rush to open a real trading account. You can use a demo account to simulate a transaction. In the simulation learning process, your task is to find your own operating style and strategy.
When your profit chances are increasing and your monthly profit is gradually increasing, you can open a real trading account for foreign exchange trading. When doing simulations, you should also treat them with a real trading mindset, because it is the easiest way to understand your situation and quickly find out the investment techniques that can be applied to real trading.
Don’t be emotional
The market is real and objective. Don’t be emotional, don’t overdo the future and remember the past. A veteran trader once said: A person full of fantasy, feelings, and exposure is a happy person, but he is not suitable as an investor. A successful investor can separate his feelings and transactions. of.
Learn risk control
The foreign exchange market is a risky market, and its risk lies mainly in the variables that determine the foreign exchange price. Although the theory and doctrine of foreign exchange fluctuations are diverse now, the fluctuations in the foreign exchange market are still often unexpected.
For investors and operators in the foreign exchange market, knowledge about risk probabilities is especially important. In other words, in foreign exchange investment, it is necessary to fully understand the risks and benefits, the probability of winning and losing money, and several major problems in preventing risks. If you do not have an accurate understanding of risk control and trade foreign exchange at will, then losing money is inevitable.
Don’t understand your personality
Knowing ourselves and knowing each other, there is no war. When investing, investors need to understand their own personality, because people who are prone to impulsive or emotionally inclined are not suitable for investing in foreign exchange.
Most successful investors are able to control their emotions and have strict discipline, which can effectively restrain themselves. Therefore, the confidant can finally win in the foreign exchange market.