Before entering the foreign exchange market, we should learn some foreign exchange knowledge, which is helpful for foreign exchange investment. However, after foreign exchange learning, it is not to say that we can carry out foreign exchange operations very well, but we should learn some practical skills, so that the effect of foreign exchange trading can be better combined with the learning knowledge. Now, let's get to know the practical skills of foreign exchange trading.
First, we should learn to set up foreign exchange account position, stop loss position and profit closing position. To establish a position is to open the market, also known as exposure, which is generally to buy one currency and sell another at the same time. After the opening, the money bought is called a long and the currency sold is called a short position. It is the premise of profit to choose the right time of exchange rate to establish position. If the timing is good, the profits will be large, but if the timing is not right, losses may occur. Stop loss cutting is to set up a position after the currency devaluation, in order to prevent losses more stop loss measures. As the timing of profit is very difficult to grasp, after the establishment of positions, if the exchange rate is favorable to yourself, you can make a profit.
Second, buy up instead of down. This is the same as the principle of stock trading. If you buy when the exchange rate goes up, you can make a profit as long as you continue to rise. However, if you buy after the exchange rate falls, you will lose unless you rebound immediately. Therefore, when the exchange rate rises, the chance of buying profits is higher than that when the exchange rate falls.
Third, "pyramid" principle. When investors buy a currency, the exchange rate keeps rising. If they want to continue to buy, they should follow the principle that every time they increase the price, it will decrease, just like building a pyramid. Because the higher the exchange rate, the greater the probability of approaching the top, the greater the risk, resulting in increased costs, but lower yield.
Fourth, do not add weight when losing money. After buying or selling a foreign exchange, when the market is developing rapidly in the opposite direction, some investors want to increase the price and do it again, which is more dangerous. If the exchange rate rises for a period of time, investors may have reached the top or close to the top when they buy. If the more they fall, the more they buy, the more they increase the price. However, the exchange rate does not rise, resulting in a very serious loss.
Fifthly, buy when rumor, sell after fact. The foreign exchange market, like the stock market, will have hearsay or rumors, which are sometimes proved to be true, but some are proved to be wrong, or even spread out by the makers. Investors can buy on good news and sell at a profit once the disappearance is confirmed. Sell when you hear bad news and buy it back when it's confirmed.
Sixth, do not blindly pursue integer points. When conducting foreign exchange trading, some investors may make mistakes because of competing for several points. Some people set goals for themselves after establishing positions and wait for them to be achieved. Sometimes there are still a few points to achieve the goal, but the investment stuck to those points, the result may miss the good trading opportunity, affecting their own income.
Seventh, do not participate in uncertain market activities. If investors decide that the trend of foreign exchange is not clear, and they lack confidence in their own operation, then investors can wait and see, do not enter easily, and trade after the situation is clear.
The above is the practical skills of foreign exchange trading knowledge, hoping to play a certain role in helping investors, but also hope that investors can get good returns in the foreign exchange market.