Talking about 10 years of experience in foreign exchange
investment (reposting and sharing)
I came into contact with margin trading in the international market in 1993, I have been fascinated by its ups and downs regardless of whether I have the conditions to trade Attracted by its unique charm, we continue to track and research; now I summarize some of my accumulated experience and lessons as follows:
A. Two basic rules for foreign exchange speculation :
1．Follow the trend ”The wind is good to take advantage of.” The huge profits in the foreign exchange market are all the result of following the trend. “Chasing the rise and killing the fall” is the correct method of speculation.
2. Strictly abide by the discipline of stop loss Whenever there is a major loss, it is all caused by the adverse trend + stop loss. People are not sages, and it is common to see the wrong market. It is the stop loss order that can keep funds out of danger.
B. Some other experiences are oriented by technical trends and don’t pay much attention to fundamentals and Changes in the news
There are a lot of news comments and various data in the foreign exchange market every day. As an amateur investor, I really have no time and no need to pay attention to these materials. I only need to make investment according to the technical trend of the currency. Strategy, because the technical analysis school believes that the technical trend has included all fundamentals and various news, the comprehensive influence of various factors on the currency, and the trend of the currency determines everything. Focus on medium-term investment and do not have to indulge in short-term entry and exit.
Amateur investors have limited time and energy. They should focus on mid-term (weeks to months) investments, reduce short-term entry and exit, and not be under too much ideological pressure. Although the New York exchange market is the most turbulent and ups and downs, Amateur investors still don’t need to stay up all night. As long as you place a stop loss order, you can sleep in peace.
can be used as two types of counter market orders Situation
1. Only test against the market in front of a major resistance level. If the position is broken, the loss will be stopped. If there is a profit, the position should be closed in time. Don’t be greedy, because the exchange rate is likely to come back after adjustment.
2. At the end of a rising (falling) wave, the market is crazy and everyone is bullish (falling). At this time, it is better to go against the market than to be too early. Wait for the obvious bottoming signal to appear before entering the market to avoid entering the market too early Swept out by a stop loss order.
Not superstitious about the role of the central bank’s intervention
The central bank’s intervention is not always effective. For example, in 1994-1995, the Bank of Japan intervened many times and failed to prevent the strong yen The upward trend has also given speculators continuous opportunities to buy the yen on dips. Strong market speculative power is always the first, the central bank’s intervention psychological effect is greater than the actual effect, the specific situation should be analyzed in conjunction with technical trends.
Central bank intervention is always right
The central bank will not intervene in the market casually. The central bank will intervene only when a certain currency appreciates (depreciates) excessively; the central bank’s intervention has sent us a warning signal, and historical experience has proved many times: In the long run, the central bank’s intervention is correct, but in the short term , the market often moves against the behavior of the central bank, and the more intervention the more it rises (falls); it is necessary to have a clear understanding of the long-term and short-term effects of intervention.
can’t simply understand bad and bullish news
Buy up when you hear good news, buy down when you hear bad news, which is very dangerous. For sudden news, the market responds more conventionally; for news that the market has long expected, it often falls when the good news is realized, and rises when the bad news is realized, and vice versa; the author opposes amateur investors speculating in the news market, and should Based on technical trends.
Do not enter the cowhide market, wait for it to break through and follow up
Many people like to sell high and sell low in the cowhide market to make some money. The profits are more lucrative and the risk is smaller, so the author advocates not to enter the cowhide market, wait for it to break through and follow up, and it is the best policy to easily earn money with the wind.
When the wind is not going well, you need to stop trading Rest and introspection
It is the smartest choice to leave the foreign exchange market when you are not in good condition.
Profitable positions can be held for a long time, but locked-in positions cannot be held for a long time. Holding a
locked-in position for too long will affect the normal investment mentality and investment plan. You should close the position as soon as possible and start again.
cNever lock
positions If you make a mistake, you will stop your loss and leave the market. Locking positions is a trick of self-deception; it is better to have the energy to “unlock” and make a few profitable orders.
Summary:
Swiss franc law: For European currencies: 1. The rise led by the Swiss franc is a strong rise. 2. The decline led by the Swiss franc is a strong decline. YSHX
Swiss franc is an important bellwether
Swiss franc is really the “nemesis” of the dollar, when it is stronger against the dollar than other European currencies , the U.S. dollar is likely to fall in the market outlook, and vice versa, especially in the bull market, which has been tried and tested yunshfx
The law of the Swiss franc: For European currencies:
1. The rise led by the Swiss franc is a strong rise.
2. The decline led by the Swiss franc is a strong decline.
3. The weak rise in Swiss franc is a rebound.
4. The strong decline of the Swiss franc will be limited.
5. The strength of the Swiss franc in the cowhide game implies the direction of the breakthrough in the game.
is recommended that novices start with second-tier currencies such as Canadian dollars, and gain experience before doing first-tier currencies.
volatility of second-tier currencies is small , not like the first-line currency with high winds and waves, suitable for novices to speculate
.
Action
Try to reduce the number of transactions, and don’t fight uncertain battles. Do more and make more mistakes, and only enter the market with confidence. ) [+ z. ?: W; o’ O. ?
You don’t have to be too “hardworking” in foreign exchange speculation. The truth is that you go in and out every day, do more and make more mistakes; only enter the market with confidence and confidence.
reasonable use For funds, it is advisable to take light positions against the market. You can only increase your position when you have made a profit when you follow the trend; you will never increase your position when you are locked in . “Yun Shang Hui Xin
Accompanied by the disaster of extinction, it is not taken by the wise, and only by fighting steadily can we stand firm in the storm of the foreign exchange market.
Pursue strong currencies and sell weak currencies-
At the same time, the trend of various currencies is strong or weak. Choose the strong currency to buy, and choose the weak currency to sell.
market is always right, and you are the one who is wrong
That’s right, the market punishes us when we lose money, and the market rewards us when we make money. We are always the ones who are wrong.Yun Shang Hui Xin Limited
