I think an excellent foreign exchange trader should be reflected in two aspects, the first is defense, and the second is offense. why do you say so? It is very important to get a good result in a day's trading. The premise is that you have to defend your position well. If your position defense strategy is poor, no matter how good your exit strategy is, it is equal to zero. So how to achieve an excellent defense, how to achieve an excellent appearance?
The first step in defense is to place stop loss points. As a trader, you must think about whether the product you are trading has a good stop loss position before placing an order. This position must be a defensive position, and such a position is generally in the position where the market trend reverses. If we withdraw our losses It will be very small, but if it is imported, our profit will be very large.
Of course, the stop loss is not only enough to set the initial stop loss, it is a dynamic process. As the market develops, as a trader, you should move the stop loss to the breakeven point. Here I want to emphasize one point to make a good profit and loss The balance point is not easy. You need to consider all aspects of the product, such as different time zones, the fluctuation characteristics of market rotation nodes in different time zones, etc. This is an important sign to distinguish whether you are a master or an apprentice.
Another important difference between apprentices and masters is how to cash out profits. The first point is based on market fluctuations and rhythms. I usually realize this based on Bollinger Bands. Generally speaking, the market prompts that volatility is weakening, and traders should reduce or liquidate their positions.
The second commonly used method is based on daily average volatility. When I trade, I pay more attention to the daily average volatility. When the position reaches near the daily average volatility, I will generally reduce the position appropriately or close all the positions according to the expectations of the day.
The third oscillator is the use of high-level time frames. You may not understand this sentence, so I will explain it to you with an example. For example, if you trade on a 15-minute frame, oscillators are not suitable for use in this frame. You can look at the 1-hour and 4-hour time frames. It would be better if they can resonate at the same time. If you are short the 15 minute frame and the 1 or 4 hour time frame is in oversold territory, then you should consider reducing your position or getting out.
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