The foreign exchange market can be both long and short, can enter and exit dozens of times a day, and is difficult to be manipulated by dealers, especially suitable for short-term foreign exchange traders. Short-term foreign exchange traders are like catfish one after another in the foreign exchange market. They can easily find the food that the big fishmen disdain to eat among the many giant whales and giant sharks.
What foreign exchange short-term traders have is also a skill. In daily life, most people can learn a skill to support their family and make a living. Those who learn special skills are like foreign exchange analysts. maintenance workers etc. Sometimes maintenance workers are more useful than analysts. Reading an analyst's report in the morning may not make you a profit in the day's trading, but the maintenance man who comes to fix the faucet at noon can stop it from leaking immediately. A short-term foreign exchange trader should not be an analyst, but try to become a "maintenance man who can repair the faucet", and you can see results as soon as you move, that is to say, as soon as you trade, buy or sell, you will make a profit.
At the same time, he must realize that he is a gambler in the casino, so a short-term foreign exchange trader must learn to hit the nail on the head, and he must also be a gambler. A good gambler is a good gambler. Both maintenance workers and gamblers must know their own limitations, that is, don't expect to become rich with it. Make a living or make a small profit here and there. You can try it, but you need to know some little secrets.
First, be happy. If you think short-term foreign exchange trading is not easy and painful, don't do it. The so-called short-term foreign exchange trading is the shortest one is day trading, the day enters the same day as the sunrise, and does not let go overnight. Holding positions for a long time is a headache for a long time, short-term foreign exchange trading does not stay overnight, and sleeps soundly at night. Because the holding time is short, the worrying time is also short. The purpose of short-term foreign exchange trading is to seek excitement and happiness. If you can’t achieve this small goal, don’t try the second one. With a little understanding of technical analysis, three points depend on ability and seven points depend on feeling. The key point is to understand a little bit. If you know too much, you can become a formal technical analyst. Why do you need to do short-term work yourself? You can learn to repair the faucet after half a day of study, and you can do short-term after only one day of technical analysis. So what to learn? For the 30-minute line chart, you can draw a trend line and use a very short-term average line, that's all. The other is to look at the market index, listen to the fundamental news, and do it according to the feeling.
Third, you must have a secondary school degree in mathematics. Knowing probability is the winning factor in foreign exchange short-term trading. In fact, the probability of a middle school degree is just nice to hear. Maybe people who have never studied arithmetic know this little problem. After short-term foreign exchange trading is entered, the situation of rising or falling is usually mixed. How to make a profit in foreign exchange short-term trading? Earn one yuan when you make a profit, and pay 0.5 yuan when you lose. In 100 times, gain 50 times, lose 50 times, lose 50 times and pay 25 yuan, and finally earn 25 yuan. This is the only way to win short-term foreign exchange trading in my heart, and there is no other good strategy. Therefore, after entering the field, if the direction is right, let it run for a while to achieve the goal; if the direction is not right, immediately exit the field, there is no room for psychological factors to consider.
Fourth, the general situation is not right, no matter how long or short it is, never trade. When the situation is right, the odds of winning will be much higher than the aforementioned 50-50. If the situation is not right, it is like sailing against the current. Skilled foreign exchange short-term trading will take a long vacation for itself. It is absolutely unnecessary to compete with the situation, and it may cause casualties. What does the situation mean? That is, if you fail to open positions in a row, then there must be a problem with your state. Foreign exchange short-term traders must give themselves a few days off to adjust their mentality.
Fifth, short-term foreign exchange trading is not every day trading. Those who do short-term trading are called day traders, but they cannot trade on a daily basis. If you make $500 trading today don't expect to get in and make $500 tomorrow. The advantage of short-term foreign exchange trading is that it seems to be doing business by yourself, and you can choose which day to do it and which day not to do it. You should not choose the day when the Federal Reserve is going to announce whether to raise interest rates to do short-term, that day should be the day to watch the show. Short-term foreign exchange trading depends entirely on psychology, emotions, and feelings. You must determine which day you are in a good mood and can concentrate on trading without interruption; at the same time, you have a strong feeling that the market will fluctuate today and you can make money. For short-term foreign exchange trading, you should treat it as a business. Study one or two currencies that usually fluctuate greatly. When you choose an "auspicious day", if you think you can do it today, you open the door to do it.
Think back to any investment you've ever been in. Have you ever achieved a great deal in one day? If you have such good luck, how many times can you repeat it? Not too much. This is because the general principles of profit are the same as those of speculation.
First of all, remember that profits take time to accumulate.
Successful forex traders know that a 5-minute change is greater than a 1-minute change, a 60-minute change is greater than a 5-minute change, and a day or a week is even greater. Losing traders want to close deals in a very short period of time, naturally greatly limiting their profit potential.
By definition above, they limit the potential for profit, resulting in constant losses. It's no wonder so many people suck at the practice of short-term forex trading. Especially under the advocacy of brokers or trading system salesmen, they will be deceived by the illusion of making a fortune by selling high and buying low that day, but they will end up in a loss situation.
These advocacy statements contain some seemingly reasonable remarks, such as: you need to write off on the same day, and you cannot hold positions overnight, so that you will not be impacted by newspaper news or major changes, so that you can control your risk stably, etc.
This is completely wrong, for two reasons:
First, the risk is controlled by yourself. The only thing we can control in this business is to set up a stop-loss point, which is the level at which we choose to exit a transaction or exit all transactions.
Yes, the market may gap above your stop loss (skip your stop loss) the next morning, but this is very rare. Even in this case, we must insist on using the stop loss point to control the loss within a certain range. Losers tend to make mistakes again and again, while winners don't.
When you open a position with a stop loss, there is only so much money that can be lost. Regardless of when or how you enter the market, a stop loss will limit your risk to a certain extent. The risk is the same whether you are buying when the market is making new highs or new lows.
The practice of not holding positions overnight will limit the growth time required for your investment to make a profit, especially if the market is against you from the beginning. If we are in the right direction, it will take more time to wait for the market to stand in the same direction as us.
What's more, getting a trade exit at the close of the day, or worse, at the end of each bar's session based on the 5- or 10-minute bar chart, has a huge profit potential. is restricted.
Remember when I said that the difference between a loser and a winner is that the loser doesn't pay when he loses? Another difference between a loser and a winner is that the winner will stick to a profitable position, while the loser will leave the market 'prematurely'. Losers don't seem to be able to stay in a profitable trade position for very long, they often win a trade and die happily because they take profits too early (often shortly after entering the day).
You make big money by learning to hold on to winning positions, and the longer you hold them, the greater the potential for profit. Successful farmers never plant seeds and dig them up every few minutes to see how they are growing. They germinate them and let them grow. Traders can learn a lot from nature's growing process. The same is true for the success of foreign exchange traders. It takes some time for investment to make a profit.
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