The vast majority of investors in 1 to 5 years, including stocks, foreign exchange, futures, etc., lose more and earn less, and there are always a few people who make money. Many people here don't know what method or simple foreign exchange trading skills can greatly increase investment returns. I went from being a rookie who had been losing money for three or four years in a row to slowly making profits. During the process of making profits, I made losses and made profits. After continuous summarization, consultation and study, the following 8 points can be roughly summed up to keep you away from losses.
1. Start your trading with a demo
For foreign exchange beginners, don't start a firm offer easily. Losing money is really too simple a thing, first do a demo account practice, if you are very eager to start real offer trading, at least one month of mock contact time is required. The simulation training is not about your mentality and courage. The simulation operation can allow you to gradually develop a sense of the market and simple market analysis in the transaction.
2. Learn more and communicate more with people
Spend more time communicating with talented peers and listen to their experiences. Although this will not allow you to make profits immediately, it will allow you to learn from multiple aspects. As a beginner, your experience will never be enough, so you need to think more and summarize more.
3. Really familiar with platform software operation details
Although this sounds simple, many people have made low-level mistakes because of this, or the software function will not work. Such as incorrectly setting the stop loss and take profit, placing the wrong order and using the chart function incorrectly, etc. First of all, you need to know how it works, and be familiar with these functions in simulated trading until you are 100% familiar with the operation of the platform software.
4. The entry and exit analysis strategy needs to be persisted
Impulsive trading cannot be regarded as a strategy, and impulsive trading is often based on feeling. In fact, many people trade by feeling. Trading strategies are planned. Wall Street investment bankers have a famous saying, plan your transaction, trade your plan. Remember not to deviate from your plan at any time, no matter how attractive the K-line looks.
5. Test your strategy on the historical market
Test your analytical strategies on historical quotes. This is actually very necessary, although the past does not represent the future. But through testing, at least understand the basic characteristics of the strategy. Perfect your forex trading skills and know when you trade.
6. No risk control, no trading
Make sure your strategy includes risk management and doesn't deviate from it. Especially when encountering adverse trends, you must cut your positions decisively without hesitation. You can set that when the total fund loss of your account reaches 5%, you will stop trading on the same day.
7. Don’t blindly chase ups and downs
This point is actually the most difficult to overcome. Many experienced traders are prone to make mistakes here, and some people may even have to face this problem in trading for a lifetime. You have to wait patiently when making a transaction. The entry point is always waiting. The market will always change ways to make you crazy, so you must understand what you are doing.
8. Keep a stable state of mind when making profits
Once you make a profit, don’t get carried away, which will lead to psychological expansion. The mentality of people who make a profit after trading is easy to change. When you just stepped on the edge of the market and made a few more orders, you may start to feel invincible. This can lead to losing patience in trading and making the mistake of impulsive trading. Remember, when you are trading, you are a small boat on the ocean. The loss must be a fixed amount of funds. No matter how many orders are placed, the daily loss is fixed at 5% of the total funds, and the profit can be enlarged. Set
Trailing stop profit. Profit can be judged according to the trend of the daily level of the band target position. According to the Fibonacci retracement line, first look at the target position of 0.382, and then look at the target position of 0.618. Leave the position, if the daily line does not change, add one order at the position of 0.382 in the total interval of the day before the callback, add the second order at the position of 0.618 in the total interval of the day before the callback, and add the second order at the upper edge of the K-line entity on the day before the callback Three orders, breaking all the positions held before yesterday's high liquidation.
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