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Foreign exchange novice beginners of capital management and risk management of several points

First of all, to expla cashbackforexpipcalculator the foreign exchange forexcashbackprofitcalculator to do margin trading among the novice, that cashback forex profit calculator, every day in the market to do business among the investors, the survival rate of 2 years or less will cashbackforexprofitcalculator exceed 5% of these are the internal statistics of the major banks in China and abroad, of course, they will not be open to the outside world to destroy their business First of all, we must analyze why there is such a high failure rate There are several reasons first, no understanding of the operation of the market principle, blind investment, or blind gambling second, no concept of money cashback forex and risk management, that is, do not know how to do money management and risk management third, even after learning the principles of money management and risk management, there is no discipline to implement these principles third, too much leverage, simply can not cope with the normal turbulence in the market I am deliberately not to mention those on the market The level of analysis of the market and the relationship between success and failure is not unimportant, however, it is not a matter of success or failure of investment market things are either up or down, everyone, including complete novices have the opportunity to look right for a period of time after a period of training, the level of betting 2 times to see the opportunity of 1 time should not be difficult to achieve, of course, betting 3 times to see 2 times, better, however, these are not critical The problem is that if the investor solves the problem of placing 3 bets, or at least seeing the right one, as long as they deal with the problem of money management and risk management, that should be enough to survive in the foreign exchange market I know that many newcomers will question my method, but that is the reality. How to improvise, how to deal with the trend after seeing the right one, how to continue to survive in the market because the direction of the market, at any time is the question of whether the opportunity is big, there can never be a guarantee I mean, newcomers to the foreign exchange market to study 70% of the time how to deal with the wrong decision, how to improvise the problem, how to see the right time to expand profits, not 100% of the time to study how to place a bet on a hundred percent of the problem. I mean that novices should spend 70% of their time studying how to deal with wrong decisions in the forex market, how to improvise, how to expand profits when they are right, not 100% of their time studying how to place a hundred bets on the problem of a hundred hits. If you say that you have developed that system, it is self-deception only if someone says he has developed a very effective trading system based on how to do money management and risk management, he is a real expert hope that in the future we study more money management and risk management issues those so-called shouting single, right or wrong does not matter less than the issue of success or failure up the most important, the issue of success or failure is related to The most important thing is, how to do money management, risk management, how to do money management, risk management when wrong, because the secret or secret of success in the investment market is only one that is to ensure that when you win, you win more, when you lose, you lose less, so money management and risk management is the secret of the fundamental which is the secret of the ancient investment market will win nothing new under the sun in the financial markets in the long term The success or failure of the financial market is determined by the correct analysis of the market trend, money management and risk management to long-term success in the financial market, these factors should be three to seven on the market forecast three, money management and risk management seven 1, the principle of the operation of the foreign exchange market because many newcomers will not do money management and risk management is the main reason for the principle of the operation of the market without understanding simply do not know what to do in the end is good So it should be briefly explained how the foreign exchange market is the worlds largest financial market foreign exchange market is the principle of operation of the market and the operation of other financial markets are basically the same in the market bullish, not bullish both sides in a certain range to do business according to a recent example of actual trading, for example, in March in the euro 1.3300 - 13480 hovering area The main reason for the formation of these hover zones is closely related to the large options activity in the foreign exchange market, i.e., there are large options sitting in the 13250-1.3300 and 1.3480-13530 zones of the euro, protecting those areas technical analysis people call this area of support and resistance, insider traders will say that the areas where large options are sitting, no matter what we have to respect the market Existence that is, buying the euro around 1.3300 and selling the euro around 1.3480 should be one of the trades in line with how the market works because thats what the market does and we have to do it with them The problem is that these options or hover zones are temporal and will not be there for a long time while at the same time factors of unpredictable news will come in at any time and will destroy the existing hover zone at any time, the equilibrium zone changes are eternal, the equilibrium zone is temporary and the hover zone is temporary. Equilibrium is the temporary euro wandering zone of the party, 13300 to break through, in general, then in the market will happen very busy options, spot trading big action usually in the wandering zone of trading, spot trading hands have their own, stop loss, stop turning point generally will not leave the extreme wandering zone of 50 points so 13300 to break through, these bullish euro spot positions are to stop loss or stop turning For professionals should be 13300 - 13250 area stop turn so that the originally balanced forces into a one-sided force to form a one-sided trend, one-sided market in the options market has also undergone great changes in order to hedge 13300 near the bullish euro options, those banks to sell a large number of spot euros to hedge their options, to ensure that they will not lose money so the general breakthrough of the wandering zone After the market speed is very fast, completely one-sided market is the reason those wandering zone broke through, the length of the unilateral market at least will be the winner of the complete payout of their positions in hand, and the other side of the power to find balance again until the minimum trend running target is probably about the same as the wandering zone range that is 13100 is the minimum target long-term, medium-term, short-term are the same steps of course, to 1.3100, how the market works depends on the situation at the time those wandering zone is destroyed after the unilateral market action, called trend in the market wandering zone is destroyed after, with the trend is also another kind of market operation in line with the sale because the market is so operating, we also want to follow that, in the foreign exchange market in line with the principle of market operation of the sale only two kinds of first, wandering zone after the breakthrough with the trend of a, second This is simply the principle of how the foreign exchange market works and why there is a hover zone and why there is a trend. Of course, this does not guarantee that the hover zone will continue to develop in the direction of the breakthrough after the breakthrough, however, the chance of developing in the direction of the breakthrough is high, so we have to bet with the direction of the breakthrough to win. In the above example, we can make several trades that are in line with the principles of market operation. Selling the euro around 1.3480 is a trade that is in line with the principles of market operation because the market is still hovering. Single can make money if there is no sell position near 13480, 13480 upward breakthrough directly after, with a certain stop loss disc also does not hurt 13300 buy the euro is also in line with the market operation principle of trading because as long as the wandering area is not destroyed, we have to respect the market if 13300 good position can not keep downward development, 13250 stop turn disc will protect the future, but also with the breakthrough later trend, the target 1.3100 if there is no buy position near 1.3300, 13300 breakthrough after the direct with, with a certain stop loss plate also does not hurt this is the spot operation law of the buyers and sellers 2, the concept of capital management and risk management in the above talk about how the foreign exchange market works, and how to deploy in line with the operation of the market principle of buying and selling issues here to talk about, do these two kinds of trading when How to do capital management and risk management issues again with the above example if the funds can buy 10 million dollars of goods, leverage is 10:1 no matter what the case can not throw a lot of money because the market is never guaranteed things can be divided into 4 parts, sold 1/4 near 1.3480 smoothly, at 1.3430 and then add 1/4 to 1.3380 to close 1/4, 13300 near the full position, 13.3380 closed 1/4. 13300 near the full close, 13300 began to turn around, the same way to 1.3480 direction to buy the euro This is the smooth case of deploying capital approach each single to have their own stop loss point of course 1.3300 single to have a stop turn point if 13480 single failure, the euro upward development, then stop turn at 1.3530, 13580 plus 1/4 to 1.3630 Begin to close 1/4, to 1.3680, full close each single need stop loss point if 1.3300 good position failed, you can also use the same stop turn at 1.3250 basically so you can deploy capital and risk management about how many points of stop loss, available in two ways because each persons account situation, different experience in the foreign exchange market one can use the point approach that just how much to lose on Stop loss for example, 50 points or 80 points another, can be seen as a change in the trend of buying and selling with a stop loss, stop turn in the above example, as long as the 13300 - 13480 hovering area, do not break through, inside the two positions do not stop loss, stop turn as long as the breakthrough only stop loss, stop turn this is to see the change in the trend for risk management approach each has its own benefits and disadvantages depending on the situation and experience of the person using the account with 10 -20 points of stop loss in the foreign exchange market long-term success of the opportunity is not large foreign exchange market needs a wider stop-loss space This is a simple concept of money management and risk management we can study more carefully to improve their own money management and risk management system 3, the implementation of money management risk management problems above is not very difficult to learn now is to speak, know easy to do difficult, knowingly the problem of investors to a certain After a certain degree of knowledge of money management and risk management, the management of funds and risk management of the markets motto by heart, however, do not do at all nimble, dragging, do a mess This is what I saw with my legion in the years of fighting together with my own eyes made me convinced that investment in this industry simply does not meet some character people investment success to have discipline, to be decisive, to have the ability to Improvisation This is not something that everyone can cultivate to get things motherly, dragging the mud simply does not meet the survival in the market for example, in the above example, near 13300 to the previous to wait patiently, to the field, according to the established policy to do down a new change immediately to improvise or leave the field, or turn around inexperienced novice overwhelmed understandable however, experienced investors Knowingly committed is likely to be related to the character, investment psychological quality of the first principle of risk management, to preserve the capital, the situation is not sure to resolutely immediately leave the field and so on the situation is obvious after this is no different from fighting a war in the above example of 13300 good position failure, 13480 - 13300 wandering area breakthrough, to 1.3100 development of investors to immediately turn around but, or slow again Look down stop loss is not, stop turn is not, let 1.3300 good position has been losing down a few hundred points until 1.2800, to chop position to the end of the market elimination, or have been holding the lost position, pray for liberation of that day more absurd is, not only not stop loss, stop turn, but also add the opposite direction of a position lock position, intends to wait for a better opportunity to unlock these are the side door, can only let investors into the fire pit Something about locking the ridiculous I have spoken in other posts please refer to say again never lock a position to stop turn or stop loss and more absurd is that the first single loss, not only not stop loss, or stop turn, to lose the direction of the brave add dead code, until completely lost as long as the capital preservation, investment opportunities are, 50-80 points of stop loss, stop turn, it is difficult to investors not stop loss, more than turn, lock position The reason why some investors cant stop loss in time, stop turn, I can only say, that is the investors personality problems, to exercise discipline, resolute implementation because long-term without stop loss, stop turn, survival rate is zero if they cant do it, please others to implement also does not hurt to run a red light once or twice can be, every time, sooner or later will certainly die money management and risk management is also the same problem is to do stop-loss, stop turn, not necessarily to ensure that the purpose of each stop-loss after the price comes back, newcomers regret endlessly, not stop-loss after the price comes back, newcomers feel that this can be done later, the problem is not big short-term several times may not be a big problem, but long-term do so, will undoubtedly fail we have to do each time the risk management things that should be done at the time so as to ensure long-term survival. Long-term profitability 4, too much leverage, gambling is too strong for some reason, many newcomers think that the financial market is a casino, blind gambling down, until penniless first of all, those central banks, large funds are how to survive in the foreign exchange market, make money first, they simply do not use leverage or very low leverage, to ensure that the ordinary volatility of the market will not cause a fatal blow second, they are using options to protect their The operation of the position rarely without hedging, in the market risk so long years of accumulation, make big money we should remember Warren Buffett, Soros fund returns of about 25% a year the former without leverage, the latter with 2; 1 leverage is not the relationship of timidity, but the relationship of the markets chances of winning too well understood their veterans also so step by step, no experience in the market at all novices use 200: 1 leverage all the value of the body Gambling on the win in the end will be how big the 1998 U.S. fund LTCM to the market out, almost caused a crisis in the financial markets is also the main reason for too much leverage, too strong gambling, ignoring the reasons for risk management is not not enough intelligence, the relationship of experience Another phenomenon is the announcement of major data before placing an order to bet on a major data news city would have been a good opportunity to buy and sell, however, not that kind of gambling on the above Two phenomena, I can only say, do not gamble, because sooner or later will lose all the investment is the essence of the winning bets, good money management, good risk management problems and gambling has nothing to do with 5, in the market capital management, risk management and psychological quality of the problem of doing business is that there is no position, we can not make money with a position, we have a risk, there is risk, we are subject to a certain degree of psychological pressure problem is How to solve these problems of balance of the problem of investment in the end is how to overcome the psychological greed, panic, how to maintain the psychological balance of the problem of the market those who lock positions, add dead code, when appropriate, not stop loss, more than the phenomenon of the turn in the end or the investors psychological quality of the problem of risk management is ultimately related to the problem of human nature, human character and quality of the problem want to avoid stress, want to avoid pain It is human nature that we cannot avoid these things in the financial markets These are the problems we have to face every day bravely If someone simply can not deal with a little pressure, a little pain, it is best not to involve in buying and selling or, dealing with this aspect of the problem to other people to do, analysis, buying and selling two separate people to do general banks, funds are taking this approach Some people are very good at analyzing the market Some people are very good at analyzing the market, but when it comes to dealing with profits or losses, it simply does not work Some people are not good at analyzing, and when they really need to take measures, they are very decisive and do not hesitate to do well in the market People who have been trading for many years will agree that the problem is that this industry has to deal with the pressure to overcome the pain.   Who said that in the market has not been under pressure, that is simply not done trading people in the market to do trading everyone to overcome different degrees of pressure   The problem is how to solve these pressure problems only one way that is to have proven in the field, proven trading system, capital management and risk management system, can implement these The systems steel-like discipline and psychological quality need to take measures without hesitation decisiveness which need to withstand pressure so successful investors need good ability to withstand pressure this ability is the ability to make or break investment is not the ability to look at the map of the city can not handle the relationship between these pressures, most of the newcomers, a few points of profit began to stress up, worried about profits into losses, the result, the To add the code when not added, wait for less than the target will immediately close the position with a small profit complacent market has turned the trend, to immediately stop the turn, stop loss, go resolutely not stop loss, more than turn, anti-market to the end of the road not only but not with the market, but the use of those side of the evil art, add dead code, lock positions and so on the choice of the worse road, until the market to eliminate so far this is to want to avoid a moment of Painful human weaknesses caused by the results of the most typical example is the Bank of Bahrain, China National Aviation Oil market is a battlefield, ruthless place who poor psychological quality, who do not have the discipline, will not survive in the end, investors to a certain level after the success or failure in the market are about the psychological quality of the problem of which industry is the same problem some athletes usually do a good job, but went to the Olympic Games to the final hurdle on failure Some athletes usually do not how, to the critical moment can take the championship are related to the psychological quality, personality in the foreign exchange market trading is also the same most of the novice in the margin trading failure of the main reasons and how to overcome those problems in the above have been said as a novice, should do things, is the first few years, at least 5 years, try to do small trading, do not do frequent trading, do not do leverage large The trading, do not learn the side ways, to learn the right approach and survival, more research on capital management and risk management issues slowly learn the laws of market operation, capital management, risk management issues of money does not enter the door of the rush in the foreign exchange market, investors should remember every day the most important issue is how to preserve capital, how to do a good job of capital management and risk management issues as long as the investor in this area of effort, as long as the investor in this area of work. Exercise their own words, long-term survival in the foreign exchange market, making money is not a difficult thing