Published on: 2023-06-19
Updated on: 2024-07-03
Technological analysis, capital, and a good mindset are the basic elements for making profits. Although many friends have the above conditions, they still cannot make profits in the forex market. Another fundamental factor is the lack of trading skills.
There are many methods for opening forex investment positions. Here are a few examples of incorrect positions:
1. After earning a few points, one escapes, while after being trapped in the market, one dies and waits, so it is called a dead wait because it may wait until death. And when it comes to death, it means that the account is dead due to insufficient funds. Those with huge funds will wait for a lifetime until the end of their lives.
2. Stop the loss once for the first time and double the order for the second time. If you make a few mistakes in this way, you may not be able to trade.
The grasp of the direction of the forex trading market and the grasp of short-term correction are very important success factors. If the trader can believe that they can grasp the general direction of the forex market, they can use the following trading strategies:
1. Seize the trend well; the iconic price point for the turn of the trend is your stop-loss reference point, and the difference between this point and the current price is not related.
2. Seize the short-term trend well. A short-term pullback is an opportunity to build new positions, not a backhand operation.
If the short-term trend is not well grasped, such as after building a position, thinking it needs to be reversed, and closing the position, but it has not been reversed and cannot be bought back, then give up and do not pursue it.
What is the correct way to position a forex size? Following the principle of two-way trading in the forex market:
The principle of building a warehouse according to the situation:
1. Be cautious when entering the market at all times; even when operating in a favorable situation, it is necessary to trade with evidence and strictly control risks.
2. If the trend does not change the signal, it is necessary to have firm confidence in holding positions and not easily closing them.
The principle of building a position against the trend is:
1. Control is the top priority in counter-trend trading to prevent irreparable losses;
2. Rebound opportunities always arise, but many rebounds are not suitable for trading: small-scale rebounds, weak rebounds, and the first wave of rebounds, all of which are significant, high-risk opportunities;
3. Sometimes, forward trading can even be unfounded, as long as the risk is well controlled. In counter-market trading, even if the risk is well controlled, do not trade without a basis.
For forex beginners without practical experience, if they have not yet formed a fixed trading rule that suits them, they must first reduce or even stop trading. The more they do, the more they make mistakes, and the more they lose. How to construct trading rules specifically can be achieved by communicating with peers and learning from professional forex traders, which will help you find direction and avoid many detours. Relying on self-exploration and learning not only requires a significant amount of time and capital costs, but also has a low success rate and an extremely high cost.
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