- The necessary knowledge of foreign exchange short-term trading
(1) How to do it
- To learn to watch a 5-minute board, beginners must slowly accumulate experience. This can develop your patience. See also the 15-minute and 1-minute disks.
- Don’t worry about trading. Money is not in a hurry. Practicing the basic skills and skills, after simulated rehearsals, increase the success rate, practice makes perfect. Practicing martial arts without practicing kung fu is a waste of time. Every day, every minute and every second, there are opportunities: you won’t miss the opportunity.
- Patience is a virtue, patience is waiting, and patience is waiting for the signal to be established, the opportunity to be determined, and the time and position are in place. Patience is the guarantee of success. Patience is a high standard and strict requirement, and patience is an inevitable requirement for precise and safe transactions.
- Wait for the signal to establish the hourly trading, wait for the completion of one bar, change bars, (the progress of the five-day moving average through the bar depends on the time progress of each bar, after crossing one bar, enter the next bar) to see the change of the five-day moving average It depends on whether it is eccentric or not, the angle and position changes. Determine whether to buy or not.
One-third is steady, and the column is changed. When this column rises to the top or falls to the bottom, you will not buy it halfway through the mountain. Changing columns, sometimes changing directions, is like waiting for the change of traffic lights.
- Wait for position trading, do not trade without callbacks, wait for time and change bars, just wait for candles to reach their positions, such as swash trading, wait for candles to pull back to touch or break through the 14-day moving average, when you are sure , Buy instantly, buy in the opposite direction from the general trend.
Do centrifugation: heterochromatic centrifugation; same-color centrifugation; hammer centrifugation; pregnancy package centrifugation; cross star centrifugation. Be patient.
(2) Swash plate opening plate:
Follow the trend: steep indicator line, main rising wave or main falling wave. The time is 5 minutes M5. Steady, place orders along (pierce) the 14-day moving average. Aggressive, place orders along (pierce through) the 5-day moving average. Resolutely refrain from changing or destroying trends.
- Technical indicators of swash plate
(1) The Bollinger Band opens and the swash plate is formed. Three lines.
(2) 5-day moving average and 14-day moving average, cross, golden cha or dead cha. Golden Cha or Si Cha, up or down, combined with MACD indicator.
3) The MACD indicator, moving up (or down) away from the moving average, increases and stretches significantly, the trend direction is indicated, and the trend is followed.
(4) RSI indicator, angle, strong reverse, slow and gentle with the trend. Follow the general trend and go against the minor trend. Wait for the callback to buy, change the different color bars to buy; or buy at the card position. Bar change buying and callback buying.
23 tips for short-term operation
Mainly look at two points:
One is the intersection of the 5-bar (daily) moving average and the 14-bar (daily) moving average (the golden cross is up, the dead cross is down), and the direction is determined.
The second is to look at the length and speed of the MACD indicator’s bar (thin bar) rising or shrinking, to be larger than its moving average, and the trend is established and maintained. Once the bar is flat or shortened, stop placing orders, wait and see, and observe changes in the trend.
- Observe discipline:
(1) Do not go against the trend. Take this as an important discipline that must be strictly observed.
(2) Do not chase orders, do not overweight, and take this as a discipline to prevent gambling and secure transactions. Chasing orders is easy to activate gambling, accept gambling, and then follow the standard signals next time. Chasing orders will be defeated.
Resolutely do not overweight, according to the probability, can not be big and small, stable and safe to win, don’t think about fishing back.
- Establish rules and strictly enforce them.
(1) Set transaction varieties, good quality, standard and easy to do.
(2) Set the bargaining chip, equal transaction.
(3) A fixed number of times, the number of times to end work. Eat fish maw, certainty, certainty and safety. Specify the number of daily trading rounds, the number of transactions, reduce the frequency of transactions, and stop trading when the number is reached.
(4) Set a time and finish work at that time. The stable period is selected for the flat plate; the main rising wave and the main falling wave period are selected for the swash plate, with large fluctuations. No overtime.
(5) Fixed profit. Specify the maximum allowable profit limit for daily transactions. Shut down the computer when the position exceeds the limit. When encountering huge profits, liquidate positions and close hands.
(6) Set stop loss. Specifies the maximum allowable loss limit for daily trading. Shut down the computer when the position exceeds the limit.
(7) Trading for capital gains is not allowed. I am afraid that the psychology of the gambler will get deeper and deeper.
(8) Regard discipline as life! Discipline is life.
(2) Quality is more important than quantity
- A successful trader is a sniper: wait for the standard signal you want before firing. Accuracy is life, if inaccurate, the less transactions the better.
- Every time you do a transaction, waiting is only a signal, not a feeling. When you plan to fire that shot (signal), you can’t put your emotions in it.
- Remember that no signal is 100%. Only placing orders according to the signal will reduce the risk.
- Making money in trading does not care how many times you do it, only whether you make a profit in the end.
- The number of transactions is small, and the risk is easy to control, which is conducive to improving the standard and quality of transactions and increasing the success rate. Conducive to controlling the mindset, keeping the mindset balanced and not unbalanced.
(3) Suggestions that must be remembered
- Centrifuge horizontally:
Including: same color centrifugation; inner centrifugation; hammer centrifugation; cross centrifugation.
Requires a horizontal disk (ie a relatively stable disk, a disk that rotates when touching the upper and lower tracks of the Bollinger Band). The central axis should be flat, the five-day moving average angle should be gentle, less than 30 degrees, and the RSI angle should be large, greater than 30 degrees.
- The swashplate does homeopathy:
Including: Jincha Dicha; Buying with the trend; Buying at the callback position, touching the 14-day moving average.
Requires swash plate (opening plate, horn opening, swash plate). The central axis should be inclined, the slope of the 5-day moving average should be steep, greater than 45 degrees, and the RSI angle should be gentle.
- Make five-minute trading, five-minute K-line bars. (After proficiency, you can also do a one-minute transaction.)
Change bar to buy. 4 minutes 59 seconds, or 00 seconds. One post, one order, no chasing orders, no overweights.
- Set the take-profit level, stop-loss level, and set daily odd numbers.
- Be clear-headed, calm, and strictly abide by the above disciplines.
- Transaction: safe.
Do flat signals, not unstable. Do not grab points, when you do not grab points, be careful to grab callbacks.
Severe fluctuation period: 2:30-4; 30 in the afternoon; 8:30-10:30 in the evening.
Be cautious when the night market is turbulent; use the swash plate to take advantage of the trend.
- Trend: Follow the trend.
Don’t trade against the trend and be cautious about callbacks.
Gambling is the weakness of human nature, remember that the deeper you go, the mentality is unbalanced.
- Attitude: Quit gambling and calm down.
The horizontal plate is centrifuged in the same color, the hammer is centrifuged, the inner package is centrifuged, and the upper and lower rails are reversed when they touch the Bollinger Band.
Refer to the attack wave of RSI. RSI’s attack wave is acute and not obtuse. The trend is real, and the opportunity is here.
MACD looks at the general trend, not against the strong MACD.
- Swashplate: Take advantage of the trend and dare to do it. The two moving averages on the 5th and 14th lines cross the middle axis of the Bollinger Band. After crossing the Bollinger Band, the upper or lower rail of the Bollinger Band bends. The four lines are arranged steeply and smoothly, forming a clear upward or downward channel and trend. Every time it touches or breaks the 14-day line is a buying opportunity point.
- Place an order: place an order by changing bars, enter the market on the hour, one bar per bar.
Chips: constant chips, the same size.
Do not chase orders. Once chasing an order, you don’t know how many orders are chased, and you will easily fall into a contrarian trap.
Time: 5 minutes for main work, and 15 minutes.
Variety: Only make one variety at a time.
Risk control, stop profit and stop loss, must stop after work, never do it again.
(4) Use your bullets wisely
- Once you start trading patiently, you will slowly learn to use your bullets (funds).
- Those who are obsessed with trading, who are always on the night watch, may not make a profit.
Traders who make 1 to 5 trades a day will not necessarily lose money. If accurate, if a single order is $200, the daily profit is not low.
(5) Planning for trading
- Before trading: emotions; signals.
- When placing an order: place an order for funds, in accordance with a fund management mentality.
- After the transaction: Review the mentality, capital and risk management of the transaction. Probability.
- Time of day: signal + wait until 59 seconds to confirm. No signal is to switch products, wait patiently. The signal appears too frequently. Seniors can see the news release time.
- Geographic advantage:
(1) You can only buy when you encounter a buy-down signal on a sideways top board or a sell-up signal on a sideways floor. Do not buy in other situations.
(2) Avoid chasing orders against the trend in a market that is too steep, or open, or narrow, or too narrow.
(6) Eight Honors and Eight Shames of Trading Experience
- Take pride in peace of mind and ashamed of suffering from gains and losses.
- Take pride in homeopathic operations and ashamed of contrarian operations.
- It is proud to bet in light positions and ashamed to bet in heavy positions.
- Take pride in waiting for patience and ashamed of impulsive impulse.
- Take pride in objective trader and shame in emotional grudge.
- It is proud to be profitable, and to be ashamed of quilt cover.
- Be proud of stable profits and ashamed of getting rich overnight.
- Take pride in contentment and be ashamed of insatiable greed.
(7) Seven deadly sins of trading mentality
Don’t want to learn, don’t work hard; turn to foreign objects instead of yourself, and place hopes on others.
Ways to overcome: First, insist on formulating a trading plan and strictly implement it. The second is to persist in summarizing and reviewing, and repeating more.
Refers to the regret and annoyance caused by traders who miss the signals and opportunities that the market has already run. Once this kind of jealousy occurs, it is easy to create huge risks caused by blindly chasing orders.
Ways to overcome: Cultivate a good trading mentality and correctly recognize missed opportunities. There is a chance to strictly abide by trading discipline.
Operations that violate the objective laws of the market are manifested as placing heavy hands and placing long orders.
Ways to overcome: strengthen the understanding of the risks of heavy-handed hazards, and prepare for long-term compound interest growth.
Do a good job in position management, and don’t make heavy moves blindly. It will be a matter of course, the technology is mature, the profit increases, the position is large enough, and the time is accumulated.
Traders lose control of their emotions and form retaliatory trading operations, which are manifested as excessive trading and excessive chasing orders.
Overcoming method: Correctly understand the loss, which is an indispensable part of trading, and improve the psychological quality of trading. Continue to lose money, temporarily leave the market, rest and adjust.
Not fearing the market, arrogant and conceited, overconfident, or even despising the market, will inevitably lead to losses.
Ways to overcome: modest and prudent, fear the market. Stop profit and stop loss, steady and steady. Transactions that are not in the plan are prohibited.
A psychological state of not daring to place orders due to losses.
Ways to overcome: Build up self-confidence, have a strong heart, and others can do it. Treat the market and signals correctly. There is no one hundred percent probability of success. You have to work harder.
This is the psychological weakness of human nature. In foreign exchange trading, the psychological weakness is compulsive gambling. This is reflected in the fact that some traders will not stop trading unless the account balance is zero. No matter how many times he has made a profit, the account will eventually become empty, because he can’t stop it.
Overcoming method: We must strictly abide by discipline, do a good job of risk control, strictly stop loss and profit every day, and close in time.
(8) Three magic weapons and core thinking of transaction mentality
We must build up self-confidence. A person cannot stand without credibility, of course, it also includes having confidence. Life is like a tree, and confidence is the root. To accomplish anything, one cannot do without self-confidence.
Believe that you can do other things well, you can definitely do well in binary options. Believe that you can control yourself well.
Meet the standards, make a decisive move without hesitation.
The market reversed unilaterally, stopped loss decisively, and knocked to the end.
Emphasize control first, control your heart, control your emotions. Control your own hands.
There are several main aspects of control: trading discipline, stop-profit and stop-loss, and resumption summary. Mainly based on the individual’s ability, proficiency, and understanding to weigh.
(1) Develop good trading habits
(2) The mood fluctuates greatly, do not operate even if you are too happy or sad
(3) The network is too poor to operate
(4) No standard signal that you are familiar with appears, no operation
(5) It has reached its preset stop-profit and stop-loss, no operation
(6) Stop operating after losing 3 orders in a row, rest and adjust, and don’t chase orders madly on one signal.
(7) It is recommended that each order does not exceed 5% of the overall position, and do not place heavy hand betting signals on small positions.
- Several core ideas
Guide yourself to continue to make steady profits in trading.
(1) Be a sniper, not a machine gunner. Strictly limit the number of odds every day, 5-10 orders, you must stop after finishing, the more you do, the greater the chance of error. Cherish every opportunity to place an order.
(2) Timely stop profit. Each transaction takes 30 minutes, look at the result, and close it in time when it reaches a certain percentage of the principal.
(3) Try to do as long as possible, five minutes, 15 minutes list. One minute comes quickly, and goes quickly. It’s really exciting, but it’s not what we want, and it’s risky.
(4) Familiar with the technology, we must be proficient in the main points of each technology, and be familiar with it.
(5) Carefully grab callbacks
Regardless of whether it is trading with the trend or against the trend, the most terrible trading method is to grab a callback. This is also the most common mistake made by most traders.
When the market rises too much, it is believed that there will be profit-taking. When the market drops deep, it is considered that there must be a bottoming out. Such a trading method is neither a trend trade nor a contrarian trade. The result in exchange is often large. Lose and lose.
If you want to make money in the trading market, quickly get rid of the bad habit of grabbing callbacks.
Second, the law of sideways trading
There is no intersection between the candlestick chart and the five-day moving average. The further away from the moving average, the higher the accuracy.
When doing eccentricity, you should also pay attention to the trend, pay attention to the angle of the moving average, whether it is an uptrend or a downtrend, and don’t go against the trend.
You can combine multiple signals to make orders.
For example: hammer + centrifugal
Inner package + centrifugal
Doji + Centrifugal.
Touching or crossing the outer rail of the Bollinger Band + centrifugal
To learn to combine multiple signals to make orders, the accuracy will be higher. The centrifugation rule applies to signals of 5 minutes and 15 minutes. It is recommended to make a five-minute plate.
(2) Bullish signal
- Take the 5-minute K-line chart as the basis for judgment. Note that it is 5 minutes, M5.
- The axis and upper and lower shadows of the candle chart are below the moving average.
- After the candle closes, buy a 5-minute binary option.
- The farther the candle deviates from the moving average, the higher the accuracy of buying up.
(3) Bearish signal
- Take the 5-minute K-line chart as the basis for judgment.
- The axis and upper and lower shadows of the candlestick chart are above the moving average.
- After the candle closes, buy a binary option that has fallen for 5 minutes.
- The farther the candle deviates from the moving average, the higher the accuracy of buying up.
(4) Centrifugal of the same color-sideways trading
- Take the 5-minute K-line chart as the basis for judgment.
- Orders must be placed sideways, avoiding the use of centrifugal method in the unilateral market position of the bell mouth.
- The two lines should be long enough; the tail of the first candle is placed on the 5-day moving average or a small amount of crossing the 5-day line; if the second line is to touch or cross the upper or lower rail of the Bollinger Band, the accuracy will be higher.
- Centrifugal of the same color, the entity colors of the two candles must be the same color;
- The order time is 59 seconds or 00 seconds, and you must wait until the second candle pattern is completely formed and the first standard is two red buy green and two green buy red.
(5) Precautions for horizontal centrifugation
- The centrifugal rule is to use the moving average system and K-line centrifugation to make orders. Suitable for 5 minute and 15 minute signals.
- When looking for centrifugal signals, the moving average system should be as flat as possible.
- The average angle is within 15 degrees (not more than 30 degrees).
- The candle candlestick needs to be completely deviated from the 5-day moving average in order to use the judgment basis-eccentricity.
Find the obvious centrifugal signal, the farther the better, specious and resolutely refrain from doing it.
- The centrifugal rule only shows 70% accuracy in straight currency. (The direct currency is the type that is directly exchanged with the US dollar.)
- The operation time is recommended to avoid the release of important news (Nutou News). Beijing time, it can be done from 2 noon to 12 pm.
- If the signal is very obvious, enter the market in 00 seconds. If the signal is not obvious, wait a few seconds to see if the 5-day moving average crosses a bar.
- Develop the habit of replay, watch more and less move.
(6) Doing sideways and flatly
- The wind and waves are calm, avoid time and risk.
Be calm and good. The profit has increased, exceeded expectations, and has gone smoothly.
The loss was too much, exceeding expectations, and angrily, so I stopped working. Unbalanced mentality does not make a deal.
Enter the market on the hour, the card is standard, and no signal will not buy. Centrifugal index, standard specification. There must be time and space distance.
- Two signals of sideways reversal: hammer and inner package
The hammer is divided into inverted hammer and forward hammer.
- Positive hammer: The shadow line is below; the shadow line is more than 3 times the body of the candle. It is best to be on the lower track of the Bollinger Band, blocked from below, and reverse upward.
- Inverted hammer: The shadow line is above; the shadow line is more than 3 times the body of the candle. It is best to be on the upper rail of the Bollinger Band, blocked by the upper side, and reverse downward.
- The signal requirements and compliance conditions of the hammer:
(3) The shadow line is at least 3 times that of the entity;
(4) The physical hammer cannot be too big;
(5) Buy and fall when the Bollinger Band has an inverted hammer; when the Bollinger Band has a positive hammer, buy and increase.
(6) Appears in the high or low position-the left side of the shadow line is not blocked.
(7) It is best to refer to the 5-minute, 15-minute trend.
(2) Sideways-Inner package
- Inner package (upper rail): Two consecutive candle lines with opposite tangent directions. The K line behind has no new highs and new lows. The inner line is wrapped in the Bollinger Band and the Yang line is wrapped in Yin. It is a bearish signal.
- Inner package (lower rail): Two consecutive candle lines with opposite tangent directions. The K line behind has no new highs and new lows. The inner line is wrapped in the lower rail of the Bollinger Band and the Yin line is wrapped in the Yang line, and it is completely wrapped. It is a bullish signal.
- Signal requirements and compliance conditions of the inner package:
(1) Sideways; do not trade when the Bollinger Band opens the bell mouth;
(3) Full package, the long entity is larger than the packaged entity plus shadow;
(4) The length ratio is approximately 2:1; the short line at the back should not be too long, and it should not exceed one-half of the long line at the front.
(5) It is best not to have too long shadow lines;
(6) Short body back to the Bollinger Band area (safe area);
(7) Inner package (on the Bollinger Band) buys down; inner package (lower) buys up. Try to intersect with the upper or lower rail of the Bollinger Band. If there is space, there is a risk of filling the gap.
(8) It should be in the relative high or low position, and there is no obstruction in front.
(9) The time is better to 5 minutes and 15 minutes, try to avoid the bull head news time period.
Fourth, swash trading
(1) See the trend clearly
The general situation is very important. This is a strategic issue, an issue of the overall situation. If you do stock index futures, if you go against the trend, your position will be liquidated every minute. See the general trend: the road to the simple. See the general trend clearly and make the offer.
It is best to have a big main rising wave, or a big falling wave. 5 minutes time-sharing chart, and 15 minutes time-sharing. The cross of M5, the cross of the 5th line and the 14th line, the trend of M15, can judge the general trend. Mainly look at the five-minute bar chart.
(2) Take advantage of the trend
What is homeopathy, as the name suggests, is to follow the trend and follow the trend instead of blocking the car or being a pioneer. Follow along, don’t fall behind, make good turns, don’t turn off the road.
It is not wise to follow the trend, not to chase orders in a hurry, and to fight against the trend. It is necessary to combine the macro and micro, strategy and tactics.
(3) Operation and method of swash plate
- The homeopathic plate must be swash plate. You must observe the 5-minute (M5), 1-minute (M1), and 15-minute (M15) trend charts, and you can do it in the same or almost the same direction.
Pay attention to the swashplate when the 2nd and 5th line crosses the 14th line (Jin Cha or Si Cha).
- Golden Cha and Si Cha. Prerequisite: The Bollinger Band is in an open state.
(1) When the 5-day moving average crosses the 14-day moving average, it means the formation of the next wave
(2) When the candle line touches the 14-day moving average, you can place an order instantly (without looking at the time)
(3) It is recommended to place orders only for direct currencies
(4) Mainly look at the 5-minute K-line chart and do 5-minute transactions
- Bullish signal:
(1) Use the 5-minute K-line chart as the basis for judgment. Preferably above the central axis of the Bollinger Band;
(2) The 5-day moving average [trading line] crosses the 14-day moving average [lifeline] from bottom to top, which is the golden cross.
(3) The candle fell to the 14-day moving average and touched [preferably to break], buying rose.
When the crossover is confirmed, place an order at a favorable price, and place an order every time it touches or breaks.
- Bearish signals:
(1) Use the 5-minute K-line chart as the basis for judgment. It is best below the central axis of the Bollinger Bands.
(2) The 5-day moving average [trading line] crosses the 14-day moving average [lifeline] from top to bottom.
(3) When the cross is confirmed, place an order at a favorable price, and place an order every time it touches or breaks.
- Make an order at the callback position
The single method of callback position is actually a kind of homeopathy. 5-minute trading, entry on the hour, 5-day moving average (trading line) to follow the trend.
Moreover, the 5-day moving average, the 14-day moving average, the middle axis of the Bollinger Band, and the outer track of the Bollinger Band can only be used when the four lines are inclined.
(1) You must observe the 5-minute candlestick chart. It can be done when the 5-minute candlestick chart is similar to the 1-minute candlestick chart. After the candle line hits the 14-day line, 59 seconds to buy up or down, the entry time is subject to the hourly entry.
(2) 5-minute trading, when the callback, the different-color candle chart intervenes, and operates accordingly. The position is above the 5-day moving average [trading line] and near the 14-day moving average [lifeline].
(3) The contrarian trend in the trend, the small trend in the big trend, this is a technical activity. Grasp the speed and rhythm well. Keep your buying and selling points well.
Waves move forward, retreat while advancing, and advance while retreating. A gentleman does not stand under a dangerous wall. Switch between red and green in time.
(4) The clutch between the two moving averages and the Bollinger Bands. There are no rules, no squares, no markings, and it’s not easy to build walls.
5-day moving average [trading line] and 14-day moving average [lifeline]. The downward or upward trend and the formation of the track are well-founded.
- Transaction matters to note:
a. Jincha Sicha only reflects 70% accuracy in direct currency (related to USD).
b. The candlestick needs to touch the 14-day moving average before it can be used as a basis for judgment.
c. The recommended operating time is from 2 noon to 12 pm Beijing time (5 minutes opening time for all currencies.
d. Please avoid the release of important news (Nutou News) when trading.
e. Set a daily profit target for yourself, and finish work when you reach it.
f. Be safe and cautious, only eat fish maw
g. Well-founded advances and retreats: sober and cautious, strictly based on technical indicators.
h. The indicator is unknown, it is advisable to withdraw.
i. The direction is unclear, and resolutely do not make orders. Post-production.
(4) Escape methods that must be strictly followed, explaining the importance and winning skills
- Environment: You must follow the trend, not against the trend, the wheels are merciless. It must be remembered that trends cannot be beaten. Why not take the trendy downwind express.
- Prerequisite: Do not operate against the trend. Repeat the contrarian operation again, the market is super strong, the fighting spirit is up, the mentality is out of balance, the recurrence of gambling, the bullet is fierce, the victory or defeat is unpredictable, it is out of control, which is not what we want. We want stable profitability, safe profitability, gentle wind and drizzle, calm wind and waves, and long water.
- Trading commodities: several disks, several varieties, one technical signal, one time-sharing time. Concentration, concentration, perseverance, stability, and familiarity. Bo two rabbits, not one rabbit.
- Method indicators Three main indicators:
(1) Bollinger Bands: Look at the market, flat and swash.
(2) Moving average indicators: 5-day line (trading line) and 14-day line (lifeline), depending on the entry point and exit point.
(3) RSI, look at overbought and oversold, inflection point prompt, sharp angle, true, accurate and timely.
Two auxiliary indicators:
(1) Macd, look at the general trend, rise, flatten, and fall. The general trend cannot be violated.
(2) Zigzag, the inflection point prompt, the prompt line of the trader.
- Transaction time: no more than one hour at a time, rest in between. No more than twice in one game.
- Time; one order per bar (note), change the bar before buying. Standardize operation and risk control. The long stream wins.
- Location: near the trading line; or near the lifeline.
- Quantity: The chips are stable, no overweight. Rather than win by adding chips. Position management wins.
- There is a plan to place an order. You cannot place an order passionately or chase after an order. High probability to win.
- Don’t be impulsive. The decisive battle is not this one. Save your strength and leave the green hills without worrying about firewood. You will have opportunities in the future.
Impulse is the devil, it is the impulse of the gambler. There is no obsessive-compulsive disorder in making a disc. You cannot start at will, but you can stop at any time. Risk control wins.
If you feel like you are willing to give up, it is really dangerous, and you have entered fighting and gambling.
Those who are good at fighting without fighting should not get into serious conflicts and dangerous situations.
(5) Trading habits
Turn on the computer every day and do the following things first:
- Open the economic calendar and check the time of major news events to avoid risks.
- Establish stop-profit targets or stop-loss targets.
- Use the trading technology you prepare to review the currency to be operated and estimate the accuracy rate.
- Enter operation.
- Every half an hour or so of operation, open the account to see if your take profit is up to the standard, and the work should be closed if the standard is reached. If it fails to reach the standard, take a rest and adjust for 5-10 minutes and continue the operation.
- After stop-profit and stop-loss ends, spend about half an hour on the day to summarize and organize.
- Prolonged operation is strictly prohibited, preferably no more than 2 hours per day.
- The accuracy of finding yourself is relatively high. It is best to do orders when there is free time and the mentality is the most peaceful.
- Watch more and less move, control, and trade for safe profit.
- Systematization of foreign exchange short-term trading
(1) Why should be systematized
First of all, we must first understand, why do we want to systemize trading? In fact, the purpose of systematization is very simple, which is to reduce the influence of emotions on transactions.
Regardless of whether it is a loss or a profit, as long as a trader is affected by emotions, it is easy to misjudge the market.
When we create our own trading system, we can wait patiently for signals when we shouldn’t make a move, and we will stop when we should make a move. Of course, systemization also has another advantage, that is, it is convenient to copy and learn.
Even so, it was surprisingly discovered that more than 80% of traders did not systematize their trading. Among the friends who systematize their trading system, very few people make orders according to their trading system. This is also the reason why many people lose money in trading.
Looking at all profitable order placing methods in the financial market, there is one thing in common, that is, they all systemize their own trading. The next thing to discuss with you is how to build your own trading system and take a step from the market. Modify and improve in one step so that you can continue to profit in the transaction.
(2) How to systemize trading
The next thing to do is to dismantle the transactions one by one. We will follow the steps step by step. It is recommended that you can record it with pen and paper. You will find that systemizing transactions is a simple matter!
- Decision signal
First of all, we have to decide the signal to trade first. You can choose the signal you are most familiar with (such as standard signals: inner package, pendant, eccentricity, flying over the wall, limit reversal), or the signal that you think has the highest hit rate.
You can decide the signal to be done through the review, but remember that the same system cannot contain two unrelated signals. For example, if you do a limit reversal, you should not add a homeopathic signal to this system.
- Determine the time period
Next, we have to decide to take a few minutes of trading, and we must clearly know the “why”, and this reason is better to be reasonable and rational, if it is only because of “impatient” this kind of reason, then your transaction will appear More dangerous.
- Decide on the entry point
The next step is the key. We have to decide what situation to “enter”, whether it is in a sideways or unilateral market, and whether it is at the pressure level support? It must be clear, because there is no such thing as closing a position in binary options. Once you enter the market, you will decide whether you win or lose. There is no room for turning back.
- Develop a single number
This is also the top priority, and decide the number of orders to be made. The requirement is: 6 orders per day, 4 orders of profit and 2 orders of stop loss, and an order of $20. This is mainly for discipline and trading habits.
Also make sure that the strategy you use is not chasing orders. Make a precise order. Why not chase orders, because most traders who are usually involved in chasing orders are easy to fall into a gambling mentality and cause huge losses.
- Set stop profit and stop loss
Setting stop-profit and stop-loss is one of the best ways to control risk. The purpose of setting stop-profit is to know what your profit is, so as not to keep trading in the market, and finally lose all profits and set stop-loss rules It is to avoid the expansion of the loss, which causes the mentality to be affected by emotions and lose more.
- Exclude risk period
All trading indicators have their desirability, otherwise they will not exist in the market, and therefore these indicators are not applicable in all time periods.
The next thing we need to do is to exclude risk periods. For example, most indicators are not suitable for use in environments with large trading volumes and drastic market changes. In addition to excluding news periods, peak trading periods must also be excluded.
- Improve and modify your system
If you have completed the above points, then the basic prototype of your trading system has been completed. Of course, these are just the most “basic”.
There are too many factors that need to be considered in the drastic changes in the trading market. After completing the trading system, there is no guarantee that you can make immediate profits, but at least it can greatly reduce your risk in the market.
In future transactions, you can continue to improve your trading system through observation of the market and understand the advantages and disadvantages of your trading system.
Slowly you will find that it is not that difficult to make a profit in the market. Of course, the premise is that you must strictly follow your own trading system.
When we enter the trading market, we should develop the habit of setting the stop-loss bottom line before trading, which will largely avoid such mistakes.
- The advancement of traders: a gorgeous turn from profitable trading to safe trading
To become a successful trader, one must understand the difference between profitable transactions and safe transactions. About 90% of traders in the market only stay at the level of profitable transactions.
Those who can advance to the level of safe transactions are mostly company managers, because they understand what the final result of fighting on the battlefield is.
The so-called profitable trading refers to any common trading method that you all can use, whether it is program trading, trend trading, or any method of analyzing trading.
This type of transaction model may generate high profits when successful, but it is not a safe transaction method because errors will inevitably occur.
Really safe transactions must rely on system engineering, rather than transaction discipline or analysis.
The market is unpredictable, and the human nature is also unpredictable. The unpredictability of the market will cause the incorrect trading signals and the unpredictable human nature at certain times. Even if the trading signals are correct, it does not mean that the execution is correct.
These are the subtle factors that make a trader or trading team fail; so don’t be happy when you can get a good amount of performance at the level of trading ability.
Because you have to step up to enter the level of safe transactions, because that can ensure that your hard work will not be easily lost.
Don’t forget, in the trading market, losing money is always faster than winning. It may take several years for you to change from ten thousand to ten million, but it may take a few years to lose from ten million to 10,000. It only takes a few months.
More importantly, when the market appears to be opposite to your transaction, you can quickly learn how to deal with this wrong transaction. Profit or loss is a secondary problem for you.
Because of a successful trader, profit is only an accessory to successful trading. You only have to keep practicing and find out the reasons before entering the market. Then you will know how to admit mistakes when they happen.
Many people often do some reviews after making mistakes, or blame the unpredictability of the market.
Before you enter the market, you have not found a good reason first, the effect of such a review and excuse is quite limited, because at the beginning of the transaction, you have not fully thought about why you traded and how you should trade.
For a beginner, it is more important to find out the reason for the transaction before trading, because such a habit will greatly reduce your trading errors and limit your impulse to trade at any price.
In the long run, you can slowly figure out a trading method that suits you. Trading is not just about direction and price.
Seven, some important suggestions
(1) Foreign exchange short-term trading experience is more important than theory
Ability is the perfect combination of experience and technology. Real knowledge comes from practice. There are many practices in foreign exchange short-term trading, right, wrong, losing, and earning. Every transaction is fully operated. After summarizing, you will get some experience in foreign exchange short-term trading.
Short-term foreign exchange transactions range from fearlessness to cautiousness, to small gains, to doubling, down-to-earth, step by step, and then to being familiar with it, doing whatever you want without overstepping the rules.
(2) Frequent short-term foreign exchange transactions are more dangerous than heavy warehouses
After doing short-term foreign exchange trading for a period of time, I found that it is addictive. No matter whether there is a market or not, sometimes I just want to place an order, even if I have to pay. It now appears that heavy warehouses are not advisable, but frequent orders are more terrifying than heavy warehouses. There are many opportunities to make money. It is necessary to wait patiently. It is important to reduce the number of operations. Do more mistakes, and the more mistakes you make, the vicious circle is worse.
(3) It is the key to grasp the rhythm through technical analysis of foreign exchange short-term trading
At the beginning of the transaction, I often saw the big Yin and Yang line after the news and data, and felt that it was very profitable at this time; later I found that the market sometimes went the other way.
Now, I feel that good entry points basically appear at the time of the opening and closing of major markets and the release of important data. To understand the general trend through technical analysis, the opening and closing of positions depends on the financial calendar and time.
Of course, technical analysis can’t cover everything, just find a few that suit you.
(4) Believe in yourself, but don’t take a chance
Every time I read the trend chart, I believe that everyone has their own judgment. After more experience, the correct rate of judgment has gradually improved. Don’t hesitate after your heartbeat, otherwise you will regret that you missed a good point.
A wise man must have a loss, and mistakes are inevitable, but he can’t leave it alone. The sooner he plays, the better. First, he can avoid greater losses, and second, he can seize new opportunities.
(5) It must be simplified first, then complicated, and then simplified
The advantages of foreign exchange short-term trading are simplicity, simple transactions, simple rules, and simple methods, but if you want to continue to make profits, you must first simplify, then complicate, and then simplify.
Simple technical learning, then review, continuous review, summary, familiarization with various indicators, complex research and familiarization, and then return to simple operations.
In the process of simplification and complication, complexity and simplification, the final conclusion that should be reached is that if so, what should be done, not what should be done.
Also, the correctness of the price is more important than how the price fluctuates; because it is the market, not us, that ultimately determines the price. We cannot determine the price of the market, but we can decide how to trade the market. With this kind of thinking, Able to win in the market.
(6) Wait patiently
In the trading market, it can be roughly divided into two types of trading, one is the swing operation, and the other is the short-term operation. No matter which type of trading, waiting is very important.
The so-called waiting is to wait for the best trading timing and price, a good trading signal, a very important element is the location and form. To have a standard form and position, it is often necessary to wait.
To truly achieve low-risk or even risk-free transactions, the only way to be patient is to wait patiently for such a transaction price to arrive, but such traders are rare.
Good trading signals are scarce in the market, but not without them. In a market full of trading opportunities, opportunities are always reserved for those who are prepared.