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Foreign exchange market risk management tips


A. Develop an cashbackforexprofitcalculatorvestment plan  Sailing to rely on the steering wheel, investment also need to have a plan book before buying cashback forex profit calculator selling it forexcashbackprofitcalculator necessary to make a full and comprehensive assessment of the various situations, the development of investment plans to analyze the positive factors can cashback forex ignore the negative news, listed bearish signal also to prevent the threat of rising to see the right chase, open the wrong rescue, these should be included in the whole set of plans, even in the most The ideal situation to earn how much, the most serious case of how much loss, should be calculated in advance unless the implementation of the previous, the cashbackforexpipcalculator has a major unexpected factors, or should not easily change the plan  How to set up a trading plan  Editors Note: Both Bright and the trading elite in the MarketWizard, are very stressed the importance of trading plans, long-term development of the plan The plan will allow traders to build a sense of stability in the psychological structure, the changes in the market have sufficient preparation for the so-called everything in advance is established not in advance is invalid, serious and careful plan, on your trading success is a powerful aid in here we recommend Mr. Yu Maoping to develop a plan of insights, hope that the guidance of this trading seniors, to help our trading  set up a trading plan: after the analysis is actually only completed a The next is the main event!   1. Entry plan: There is a big principle: "Better to miss than to make a mistake"! Dont be afraid not to do, a good start is half of the success! There is no real good opportunity only to wait and wait again! Patience and then patience! Missed just do not earn or lose! The wrong one is to suffer and even to die! So it is recommended that first from the daily weekly to find support and pressure, aim at the target, wait for the completion of the hourly chart pattern before entering! This can save too long waiting and the risk of misjudging the trend! Must also consider the entry price is not too far from the stop loss to avoid not enough cost!   2. Profit plan: If we are lucky to catch a ride on the hitchhiker, not only to avoid getting off midway, but also as far as possible to ride and bring more goods! Assuming that we really got on the hitchhiker, looking at the position for us to earn a lot of money will make us always worry about the cooked ducks fly again, it is easy to "get off halfway"! Its a shame, so when you have the idea of "pocketing it", you might want to think about whether its time to add parts instead of closing the position! Again, unless the situation is extremely clear, we should first assume that it is a "continuous pattern" rather than first assume that it is a "reversal pattern"!   Second, control the proportion of open positions  For traders who have been in the market for a short time, the proportion of open positions can not be too large, only when the accumulation of sufficient trading experience and have a consistently good trading record and then consider gradually expanding the proportion of open positions for newcomers to the foreign exchange market, it is recommended that the proportion of open positions does not exceed 30% At the same time, according to market trends, it is recommended to use progressive tactics to open positions in batches, in order to effectively disperse Risk  Margin trading double account operation of the opening and splitting skills  A, double account operation of the margin and the amount of open positions ratios  Many people think that margin trading is extremely risky, indeed, many people lost money in fact, this is not the use of margin trading a mistake margin trading is the greatest benefit of hedging, with hedging or double account operation to prevent the risk of this operation profit It may not be the most profitable, but you can be sure not to lose money. It must be remembered that only when the direction is clear can you risk a single-sided operation, this kind of market in a year there are not a few times so, when I guide my friends to operate, I insist on double accounts, according to the different risk situation to determine the different proportions, in the same currency pair at the same time to open positions. How to choose the fastest and most flexible currency pair However, just because it is silly, so it does not lose On the contrary, many smart people because they choose to operate unilaterally and heavily, earn money easily and lose it all quickly  In margin operations, we generally choose 200 times the capital leverage, the return to risk ratio is not too big or small, because it is a double account operation, can make the number of open positions appropriately enlarged, which is equal to increasing the amount of capital the same As long as our risk control points are appropriate mainly in the performance of when to open positions (stop loss), the timing of the opening and closing time to choose the accurate, this double account operation, the risk is almost equal to zero  For example: when we open two margin accounts at the same time, the capital is 10,000 U.S. dollars, we simultaneously in the same currency pair to buy up and buy down, the opening volume can be enlarged to 20% Than a single account operation can be 2 times higher so that the exchange rate fluctuations in whatever direction, the gains and losses are proportional to the loss, the loss is only the commission but, the exchange rate fluctuations are fast and slow, to the important support level is bound to rebound we sell the profit chips in the important support level, to be rebounded when the exchange rate and then the loss chips split position, or even hold for a period of time, because, our overall margin resistance risk capacity has 1500 points, can be greater than a single account operation for greater returns this manipulation method often makes us bilateral profits at least to ensure daily profits  Third, stop loss is always around  Each transaction should set a stop loss price, and strictly enforced, when the exchange rate to their own operation of the favorable direction of operation, you can set a trailing stop loss for risk control, but in turn when the exchange rate to the unfavorable to their open positions In addition, the stop-loss point should not be set farther away than the mandatory closing point, otherwise the stop-loss price will be forced to close the position. The more simple the reality is, the easier it is to ignore! In the speculative market full of variables, many people know the importance of the stop loss, but in the end still fell on this hurdle, some even a thousand gold scattered, miserable! So the stop-loss problem is really the correct positioning, understanding and implementation of each buyer and seller is a mandatory course  A, stop-loss is the safety of speculative survival  Countless blood reality shows that in the risky speculative market, an unpredictable serious error foot to fatal, but the only way to make a mistake without losing is to stop in time about stop-loss, we have heard of the crocodile law, when the crocodile When the crocodile bites your hand, you must break your hand and run wild, when the crocodile bites your foot, you break your foot and flee, do not hesitate, do not try to struggle, struggle the end of the biggest possibility is the loss of life! The crocodile eating people is too cruel, but the cruelty of the futures market is not half bad for investors who try to turn the market by luck by virtue of luck! The face of the jumping fluorescent screen, I do not know how many people are experiencing the pain, life is worse than death!   The futures market is permanently full of speculation, permanently full of temptation, permanently full of risk, permanently full of change…… you have both the possibility of winning a big, but at the same time there is also the possibility of loss or big loss! Because the futures market, from its rules of buying and selling, is destined to lose most of the money and losses, the game can finally go on and on because the futures market, even the entire capital market itself is not a productive field whose market activity itself can not create value it is only a place where the benefits are constantly redistributed all the profits of the winners are all derived from the losses of the losers at the same time, for the winners and losers The institutions and individuals serving the winners and losers must also be fed by the losers, due to this consumption, the winners and losers can never be balanced This is the cruelty and ruthlessness of the capital market, it is also the negative and game of the market, the formation of this ruthless ending This ruthless ending is the cruel market has created a large number of losers! Market gurus emphasize that an important quality is the ability to withstand loss and timely recognition of loss for all buyers and sellers, the biggest foot may be in the refusal to accept failure when the failure has a habit, that is, it will get worse, so if you do not accept it when the acceptance, the results will be what you do not want to see, for most futures buyers and sellers, unwilling to accept the loss of reasonable has been The futures market is not without its laws, but in the face of hundreds of thousands of buyers and sellers of games, making it impossible to have any fixed laws at any time in the futures market is the only permanent change, even if the law will not simply repeat itself. Even the laws do not simply repeat, not to mention the occurrence of some unpredictable situations such as war, policy, etc. Volatility and unpredictability are always the most fundamental characteristics of the market, which is the basis of the market has no certainty in trading, all the analysis and prediction is only a possibility, the uncertainty of the market has created the necessity and importance of stop loss so that every investor who enters the futures market must admit that he or she may make a mistake at any time. This is a very important concept  Fourth, stop-win should not be ignored  because the floating profit generated by the open position is not really profit, only the settlement of the closed position is the real profit, so in order to achieve their investment profitability goals based on a reasonable set of stop-win, to protect their profits is also very important in general short term operation, stop-win can be relatively small, long term operation, stop-win is relatively large. The long term operation, stop-win relatively large  Stop-win stable profit guarantee  Editors words: the so-called learn a lesson and grow a wise, newbie Yi finally learned to use a combination of fundamental and technical analysis to determine the trend of the currency price but, she is still frequently wrong in recent transactions, what is the cause of this?   new new demon said: November 25, 2008, I was looking at the EUR / USD plate trend chart, found that the 10-day and 22-day averages have turned up, it is in the exchange rate effectively broke through the 1.3000 integer mark after buying a hand that day, the exchange rate quickly up, and the highest reached 1.3080, but I was greedy, did not immediately win out the next day, the exchange rate opened high and low The next day, the exchange rate opened high and low, once below my buy price, at the same time, the average also began to retrace downward to see such a situation, I know that the short term down market has been inevitable, stop loss should be the best way to control losses, but never make a decision, because if you close the position, tens of thousands of dollars will instantly disappear into thin air; if not close the position, despite the risk of blowout, but in case the market reverses it? It is this kind of fluke psychology, I missed the best opportunity to close the position, and eventually ended up with a burst position and, even if there is such a lesson, in the subsequent transactions, I will still weigh the pros and cons of repeatedly misses  Hundreds of people talk about the exchange reply to the new new demon: the money disappears in a moment, which is something no one wants to see, but the stop loss should still be determined, otherwise Only will brew more serious consequences  play the foreign exchange market said: my biggest problem is too gullible to believe in the views of others around a lot of friends are speculating in foreign exchange, so idle boredom, will exchange exchange experience this is a good thing, but let me repeatedly lose in the transaction for example: some time ago Japan announced the fourth quarter of 2008 GDP was a double-digit decline, I think Fundamentals are not conducive to the yens trend, it is ready to buy USD/JPY However, a friend around me reminded me that: the yen is a safe-haven currency, the worse the global economic situation, the more it rose at the same time, he also gave me a look at the previous USD/JPY chart I listened to, think it makes sense, plus friends speculate in foreign exchange for a longer time than I do, understand more than I must, so they rejected their own views, and shorted by hand A single who had thought, then the yen is a diarrhea ah!   Five, pay attention to market hotspots  As an investor, pay attention to market hotspots is very important to fully understand the premise of market information, timely grasp of the market rhythm, go with the flow, can reduce unnecessary losses, so you get greater gains foreign exchange is a vast and profound discipline, more research on the market, improve the knowledge of the market for trading is very helpful   The truth of the foreign exchange market  The truth of the foreign exchange market  nbsp; The truth of the foreign exchange market  A, I will always believe: regardless of the past, present and future, human beings can not fully understand and grasp the full operation of the securities market mechanism and internal logic, so far all the securities market analysis and investment theory in the ancient and modern world, are basically stuck in the blind to feel the elephant level one of the most basic functions of the market, is to eliminate all attempts to overcome the market, the challenge of the market The genius or monster, because assuming the emergence, the existence of such invincible monsters, the ecological balance of the market will be destroyed, and the entire market system into a black hole, a pile of rubble who can not make the bottle that can contain the potion that can melt everything Bodhi this is no tree, the mirror is not a platform all the laws, such as dream bubble, such as dew and such as electricity, should be viewed as such  Second, the securities market does not matter The laws and patterns of our fictional countless laws and patterns, but only we refuse to admit their ignorance of the complex world of the performance of any one moment we face the market reality, in history has never been, in the future will never again constitute this moment, the current market reality of the thousands of factors, always changing insight into the historical trajectory of the market is important, because there is always a large amount of information and knowledge stored in the However, to seek the so-called patterns or laws in this way is to seek fish from a log, and to adopt the most advanced mathematical and statistical techniques to find the so-called securities laws and patterns is one of the shortcuts to bankruptcy Western securities market has a history of 400 years, but compared to the endless future, the various patterns and laws in its history have almost no applicability to the future. applicability is almost zero; not to mention the Chinese stock market is only a district of twelve years!   Six, strengthen the learning of professional knowledge  strengthen the learning of foreign exchange expertise, analysis of foreign exchange fundamentals, analysis of the characteristics of various economic data and the characteristics of each currency, proficiency in the technical aspects of foreign exchange knowledge and use to analyze the market, develop keen market insight and forecasting power, explore the essence of EFT products, so that whether it is for your professional level of leap, or profitability I feel more and more that learning is the only way to keep yourself in the market for a long time, and that continuous learning can bring you new things. In a sense, the ability to learn can represent your trading ability and analytical ability  investors will continue to encounter confusion and confusion on the way forward, these confusion and confusion itself will prompt everyone to continue to learn, so investors are eager to learn the motivation is always there, the instinct to profit will prompt us to continue to learn the key to the problem is: futures learning is not easy. The difficulty of learning futures is perhaps no less than the difficulty of trading for profit, so many people are forced to stick to learning for a period of time and then go along for the ride for a long time, and it is difficult to learn further and deeper  the knowledge of the futures market is not too much, as long as you are willing to work hard, a year and a half is estimated to be able to learn futures knowledge, so the introduction to futures is very easy, but this is only the initial stage of learning. However, this is only the initial stage of learning Many people conclude after completing this initial learning that futures are easy to operate, and then begin to enter the trading market The results are predictable, losses follow, and in the real trading he realizes that there is still too much to learn This will make the investor quickly enter the second stage of learning: the confused and lost stage In this stage, because the investor finds that there are too many things to learn The majority of investors are unable to pass this stage and are eliminated from the market. An investor who can pass this stage will enter another state where he can form his own trading philosophy, form his own trading model, and even form his own trading philosophy, that is, his thoughts and trading have formed a system. However, an investor who enters this state can only make profits in stages, but not consistently and steadily. The first two stages of investors, even ridicule, unwilling to communicate with others indeed, to reach this stage of the people would have been few, so he became lonely, and thus also at the same time difficult to learn and progress again investors reach this stage, will form their own system: technical-based or fundamental-based, or policy-based, much like the martial arts schools, each other light  VII. Improve the proficiency of the use of the trading platform  Improve the proficiency of the use of the trading platform, but also help investors better control the risk of foreign exchange operations first, before the actual operation, through a large number of simulation trading platform operations, can effectively avoid unnecessary losses caused by low-level errors such as under the wrong single, under the reverse single In addition, skilled mastery of a variety of technical indicators to analyze and improve trading skills, the For a better grasp of market trends or very beneficial  If you want to make money in gold forex stock market  Do not ask me again, how you make money, now I will publish my method  If you want to make money in gold forex stock market and other investment (speculation), you must do the following:  First, familiar with the four books and five scriptures, and I know that for you, it is difficult to carry on, but I am so hands and diligently cultivate the body  Second, familiar with and use dialectics, go read Lao Tzu it, Confucian dialectics is not as clear as the Taoist ----- If you think so then it really can not, go read Hegels dialectics or the writings of Mann, Len and Mao, especially Maos "Contradiction Theory" and "Theory of Practice" Taoism And Confucianism are talking about dialectics, Taoism focuses on discernment, while Confucianism focuses on the dialectic to the middle and as for later philosophy, both Chinese and foreign, most of the things in the repetition of Confucianism and Taoism (they both originated in the Zhou Yi), including the later Marxist philosophy and Mao Zedong Thought their principles are consistent and inherited  Third, again, the significance of reading philosophy books investment (speculative) market, is the market of people The market is the result of many things, but it is also the result of many peoples psychology -------- things are universally connected ------- seize the main contradiction of things and the main aspects of the contradiction, you will not be in the fundamentals, such as war, natural disasters, statistics, official speeches, etc. above the uncertainty; at the same time, you must be calm and do not be those pretentious commentators or rumors You must not be fooled by pseudo-commentators or purposeful rumors, which are staged every day in the first financial or mainstream online media ------- see through the phenomenon -------- they are no more capable than you, except for their lying skills but, as an individual, you should catch the important information and scrutinize it, but if you make subjective assumptions or expect the market situation to be as you think, then you will go bankrupt ------- Then you will go bankrupt -------- the market is objective and you will always be just a weak subjectivist ------- if you keep losing money, please understand that subjectivity should be in line with objectivity; you will also find that the market operates, whether from the history of the stock market operation in the West over the centuries or todays markets at home and abroad, they are performing the discursive story of philosophy - ----- the reciprocal cycle of boom and bust; then, you will find more discursive stories through your operation -------- even within a few days or within a days fluctuations and bring you to the realization