Many investors who have entered the foreign exchange market have almost been locked up. This is a question that everyone does not want to mention, but it is also an unavoidable topic. It is a necessary threshold for every investor to mature. Since you can’t avoid it simply, you must face it bravely and find a solution that suits you. The editor of Yuhui International would like to explain from the following three aspects.
Methods of unwinding in different situations, practical
【First】According to the position status in hand, do the following processing:
- Investors who are lightly locked up can use the rebounding market to get out of the game, or lighten up their positions on rallies;
- Investors who are locked in high positions can also make partial lightening operations on rallies, so that they can take the psychological and financial initiative in the next wave of market conditions.
[Second] According to the technical status of the purchased currency, the following processing is performed:
- If it is locked, the currency you bought is at a high position and you must stop loss immediately.
- If the currency you bought is in the middle position, you can temporarily wait and see based on the situation at that time, so as to get out of the market or lighten up your position on rallies to reduce losses.
- If the currency you bought is at a low level, you don’t need to rush to stop the loss. After the currency you bought has stabilized, you should dare to cover your position at a low level at important support levels and dilute the cost. In the next rebound in the market Rescue the high locked positions together.
[Third] According to the trend status of the purchased currency, the following processing is performed:
- If the currency you are buying is on an upward trend, you don’t need to stop the loss. If you hold it patiently for a period of time, it will inevitably be released, and there may even be greater profitability.
- If the currency you bought is in the trend of balance and shock, you don’t need to stop the loss immediately, and wait patiently for the currency to enter the high level of the shock cycle. Once the currency is released or the loss is small, you should decisively leave the market.
- If the currency you are buying is in a downward trend, once it is confirmed that the downward trend has been formed, you should stop the loss immediately, and you should never have any illusions about gains or losses.
There are mainly four commonly used unwinding strategies:
(1) Stop the loss with a sharp knife to cut the mess. It is about to sell all foreign exchange holdings to avoid further losses in exchange rates. Adopting this kind of unwinding strategy is mainly suitable for short-term investors whose purpose is speculation. Because in a downtrend short market, the longer the short-term investors hold, the greater the loss it will bring to investors.
(2) Operate by shifting gears. That is, stop the loss first, and then make up at a lower price to reduce or flatten the loss of the upper gear. Take stocks as an example. An investor buys a stock at 60 yuan per share. When the market price drops to 58 yuan, he predicts that the market price will fall again, that is, it will lose money at 58 yuan per share, and when the stock price drops to 58 yuan per share. It was added at 54 yuan and sold when the stock price rises in the future. In this way, not only can you reduce and avoid lock-up losses, but also sometimes turn losses into profits.
(3) Take the method of flattening down. That is, with the increase in the decline in the exchange rate, the purchase was increased, so that the cost of purchasing foreign exchange was lowered, and the exchange rate rebounded to make a profit. However, to adopt this approach, it is necessary to confirm that the overall investment environment has not deteriorated, and that the market has not changed from a long market to a short market. Otherwise, it is easy to fall into more and more dilemmas.
(4) Adopt the method of “no sell, no compensation” that remains unchanged and responds to changes. After the list is locked up, as long as it has not been released, the investor cannot be deemed to have lost money. If the list in hand has development prospects, and the overall investment environment has not deteriorated, and the market trend has not deviated from the unknown market, then there is no need to panic for a while. The method that should be adopted at this time is not to sell the locked list and the order. It is to keep holding to adapt to changes, waiting for the near price to rise and unwind.
[Summary] For lightening or liquidating positions after being locked up, when investors do operations
You must act hard and decisively, especially in a downtrend. Many investors have this kind of operating experience. After being locked up, they hope to get rid of the set every day. When the set is released one day, they are not reconciled: I have been holding it for so many days, so how can I make some money. As a result, he missed the best opportunity to close a position. When the market re-entered the decline, he was caught again. In the end, he was completely desperate and lost confidence and cut his flesh out. This is the most taboo in the downtrend.
After being locked up, handling is a passive operation in any case. Unwinding is a basic skill that investors must master, but investors should put their energy on before locking up, find ways to improve their analytical skills and trading skills, and minimize the number of locked up , Always occupy the initiative of funds and mentality. This is the most important.