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10 COMMON FOREX TRADING STRATEGIES, WHICH OPERATIONS SHOULD BE AVOIDED?


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In the forex market, in addition to correct market judgments and excellent capital management, the most important thing is to formulate excellent operational countermeasures.

We will introduce to you the methods of formulating operational countermeasures in foreign exchange trading, 10 common foreign exchange trading strategies, and ideas on how investors should avoid stepping on thunder?

HOW TO FORMULATE FOREIGN EXCHANGE TRADING STRATEGIES

A good foreign exchange trading strategy is very helpful for investors to carry out foreign exchange investment.


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In the foreign exchange market, in addition to accurate market judgments and excellent capital control, the most important thing is to formulate good operation pairs. So, how should the operational countermeasures of foreign exchange transactions be formulated?

  1. Operation direction: First, consider the short, medium, and trend directions of the sales market, decide that the operation to be carried out belongs to it, and carry out a reasonable layout of the operation. The medium and long-term operation direction should be in line with the market trend. The center-line operation emphasizes the main performance of the sales market to measure price cooperation. The short-term direction of stocks depends on improvement. The best entry point is found purely from a technical point of view, and the short-term technical indicator analysis of the stock is the input Field basis.
  2. Overall funding plan: After deciding on the direction of operation, an overall plan for organizing funds must be formulated. Initially, decide how large the part to be operated is, generally based on the capital investment. The long-term part can be high in the proportion of capital investment. In the short-term, it is best not to exceed one-third of the total capital investment. In addition, after entering the market, measure the loss probability of the overall target at the positioning point. When the profit probability and loss probability are 3:1, relevant operations can be performed. Good fund management methods can basically control the success and failure of countermeasures, and investors should not ignore it.
  3. Offense and defense must have a plan: For the first defense of countermeasures, only a firm defense plan can be opened to the outside world. During the transaction, do not be impatient, have patience and self-discipline, and prevent psychological changes from jeopardizing the success and failure of the operation. When formulating a foreign exchange trading strategy, it is necessary to correctly analyze the entry point and operation. When can we increase the warehouse? How much does it cost to increase the warehouse? A sound offensive and defensive plan can grasp the huge losses of each transaction before entering the market, and can also cope with the short-term sales market fluctuations within the scope of the work capacity.
  4. Setting of stopping point: When the foreign exchange market is operated in different links, the stop point is set differently. In the mid-to-long-term operation level, the choice to stop losses must be a high proportion, and the funds held must be high to prevent the market from appearing because of temporary reverse market conditions. The choice of centerline operation stop is generally inclined to the technical aspect, taking the current market development trend line as the reference. In addition, the setting of stop time loss is also very important, and only experienced investors can make a good difference.

The setting of foreign exchange trading strategy is to ensure that investors respond more strongly to the ups and downs of market trends. In the foreign exchange market, full of unknown risks, a sound quantitative trading strategy is also the best countermeasure to reduce risks.

10 COMMON FOREX TRADING STRATEGIES


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A good foreign exchange trading strategy plays a key role in investors’ foreign exchange investment. Especially in the foreign exchange market, adopting certain strategies can make us more profitable.

We will introduce 10 common forex trading strategies for you.

Strategy 1: When just getting started, try to capture 20 points from each trading session, then stop, turn it off, and do in-depth research and summary. When you are really good at it, ask for more. Before you become a master in the foreign exchange industry, set a 20-point goal and stick to it. Emphasize the word industry, it is not a game, it is related to your hard-earned money.

Strategy 2: Spending the main time on the 15-minute chart will help improve short-term trading techniques.

Strategy 3: Before starting a certain trading session, look at the 1-hour chart to get the trend of the time period transition and how it might go when the new time period starts.

Strategy 4: Only when you absolutely know what happens behind the 15-minute chart, then look at the 5-minute chart, especially when the candlestick stretches or just crosses the pivot point, in other words, is there a reversal on the 5-minute chart and the 15-minute chart Hasn’t been reflected yet?

Strategy 5: Don’t stay on the 5-minute chart, because it has too many noises that will interfere with your foreign exchange trading strategy.

Strategy 6: The law of the moving average on the 15-minute chart: Even if the moving average is up on the 1-hour chart, if it is down on the 15-minute chart, this implies that the reversal is coming but has not happened yet, and you don’t want to miss the 15-minute chart. Reflecting what is happening.

Strategy 7: If the moving average is moving up and down on the 15-minute chart, but the price wants to go up, sooner or later the price will go down, such as being bounced back by the pivot point, or captured by three other tools (bar chart, moving average divergence or trend line analysis). The same is true for the situation where the moving average is moving and the price is going down.

Strategy 8: Only use the divergence of the moving average instead of the moving average as a signal for buying and selling. It is a delay indicator and is too slow for foreign exchange.

Strategy 9: The divergence of the moving average on the 15-minute chart is more important than the one on the 1-hour chart. The divergence means that the moving average and price fluctuations are in the opposite direction.

Strategy 10: When you place an order close to the pivot point or an important pattern (such as a double top or trend line break), put your stop loss on the other side of the event that made you act, but not too close, because the price often breaks Pump back. If you use a 20-30 pip stop loss, but 33 pips can safely pass the reverse draw, then use 33 pips. The rule is 20-30 points, but it must be reasonable.

NEED TO AVOID THE WRONG WAY TO STEP ON THUNDER IN TRADING

Good ideas will bring us profitable gains, and wrong ideas will bring us to the brink of failure. There are many foreign exchange trading strategies, and there are also wrong ideas.

So, what kind of wrong ideas should investors avoid in foreign exchange trading?

  1. Don’t blindly pursue integers: This requires investors not to blindly pursue round numbers when buying and selling. In practice, some people set themselves a profit target after opening a position.
  2. Don’t blindly cut positions: After buying in the bull market, the random market fell sharply. Do not panic at this time, it is best to reflect on it. If you can determine that it is a reversal, you must immediately decapitate the warehouse and fight against Ge.
  3. Don’t enter the market if the trend is not obvious: The sharp rise and sharp fall of prices will not rise or fall in a straight line in the foreign exchange market. If the price rises sharply, it will adjust, and if it falls sharply, it will rebound. Adjustments and rebounds are complex and difficult to grasp.