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Foreign exchange margin trading how to control the position

foreign exchange margin trading, generally 1:100, 1:200 amplification of the transaction, so that you can make a small gain last year, the foreign exchange trading market volatility, creating a lot of opportunities to make money, but also everywhere cashback forex profit calculator the opportunity to blow up I said to a friend who just opened a foreign exchange account, blowing up a position is as common as eating based on my many lessons learned from blowing up a position, summarized the following three forexcashbackprofitcalculator blow up The direct cause of the 1, the direction of the reverse 2, did cashbackforexprofitcalculator set a stop cashbackforexpipcalculator 3, the position is heavy these three points are often combined to the role of the direction of the reverse in a range, even if the position is light, it is difficult to control their trading emotions to do range fluctuations habit of people, the more against the more positions, which will often be back to substantial profits but once the range is broken, the position is bound to do forex trading, who can not be 100% correct direction, especially is to do small and medium-sized swing, between cashback forex0 and 200 points so set a stop loss is to prevent the burst of the protection of another situation, set a stop loss will also lose a lot, is a heavy position such as you have 1000 U.S. dollars to do a lot of transactions, fluctuations is 10 U.S. dollars, set a stop loss of 50 points, hit the stop loss on the loss of 500 U.S. dollars, losses in general so that the big gains and losses of the transaction is also bound to go burst The road to foreign exchange investment summed up an appropriate position ratio for your reference account capital of $ 500, the smallest trading unit 0.01, leverage 1:200. According to the Jahn 21 trading discipline, each transaction can not lose 10% of the total principal as a standard, the following settings 1, $ 500 to do 0.1 lot of transactions, in turn 50 dollars to do 0.01 lot of the proportion 2, important opportunities The stop loss is 50 points when the transaction is placed Why is it 50 points? So that $ 500 to do 0.1 hand, 50 points stop loss of $ 50 so that the loss of funds did not exceed 10% of the total principal! This 50 points is an empirical value, if you want to set a stop loss of 100 points, the position will have to be reduced by half, $ 500 can only do 0.05 hands, so if the stop loss out, the amount of loss is also $ 50 This is the spirit of each loss can not exceed the proportion of the total principal 10% understand this principle, you can flexibly adjust the position 3, in the event of a trading loss, the future trading position to be adjusted downward Take Article 2 for example, the original 500 if a continuous loss to 450, then the future repositioning lot to become 0.09, so that the original 50-point stop loss of 50 U.S. dollars, now it becomes a loss of 45 U.S. dollars, or not more than each loss does not exceed the principle of 10% of the total principal 4, the same, if the profit, the increase in capital, the position can be expanded, for example, now earn 300 U.S. dollars, there 800 U.S. dollars, then the maximum position is 800/50 = 16, that is, 16 0.01 hands is 0.16 hands, because it is to 50 U.S. dollars to place an order 0.01 ratio, 800 U.S. dollars is 16 50 U.S. dollars so derived from this result 5, if you think that each loss of 10% more, want to lose no more than 5% of the total principal each time, then in the case of unchanged stop-loss points, we must adjust the position, the Position adjusted to 100 U.S. dollars to do 0.01 hand ratio above is to protect the overall principal perspective of how to arrange positions that this 50-point stop loss is a certain, not stop-loss point is usually set in three ways 1, the overall capital security protection method is the method described above 2, the technical level of stop-loss method in the technical level of stop-loss method, there are new problems, but the calculation is the same as the method above for example 1.4500 breakthrough for more pounds, after the breakthrough down to 1.4430 breakthrough, representing a false breakthrough, and buy point is a breakthrough point above 20 points (in order to avoid false breakthrough), is 1.4520 points, so 1.1520-1.4430 = 90 points of the proportion, plus two-way 8 points of difference, is 98 points so that in order to control losses do not exceed 10% of the total principal, can not 500 U.S. dollars to do 0.1 hands, but 500 U.S. dollars to do 0.05 hands how to calculate the above 5 points in the example of 3, the combination of the first two methods of application here to say a principle is that the above two methods of stop-loss points are not the same time, if the technical points greater than the permanent 50 points according to the technical points stop-loss and adjust positions such as 2 examples are such a situation when the technical points is less than the permanent 50 points stop-loss criteria, the technical points set by the technical points such as buy the 50 points and adjust positions. According to the technical point setting such as buy point from the technical break level only 25 points so that if you want to play the leverage advantage can be $ 500 to do 0.2 lots of transactions, because of this loss 25 points stop loss out, a total loss of $ 50, the same did not exceed each loss does not exceed 10% of the total principal principle above said the example of the situation are calculated according to the maximum position as for the choice of loss ratio is not more than 10% of the total principal or 5% Or other, according to their own risk aversion depends on the situation but the upper limit is best not to exceed 10% of the proportion and the proportion of this position said earlier, is found when the market important opportunities, generally 200 points to 500 points of opportunity if you like to do short term small fluctuations are to be even smaller positions, I suggest that the above position ratio of 1 in 3. Adjust the small that the above important opportunities generally how much time to occur once, in my personal experience is that the 200-point swing opportunity a day is also 2, 3 times, so do not exceed 3 transactions per day, if caught unlucky, 3 consecutive losses is a loss of 30% of the principal ah and 500-point swing opportunity, a week can have a 2, 3 times on the good so to reduce transactions, especially the largest position trading proportion of the transaction (the above are calculated by the maximum trading proportion of the position) and finally put forward a proposal, speculation is to make money to a certain percentage of the foreign exchange to take out because the burst position is as normal as dinner, the uncertainty of this market is too much to the money in hand is their own ah