Investors who speculate in foreign exchange know that the foreign exchange market is turbulent, trading at any time, and fluctuates at any time, coupled with the existence of leverage, speculating in foreign exchange is like a roller coaster ride, and people with a bad heart can stimulate It’s okay to make money when you get sick, but when you lose money, your whole person is in a state of ignorance, and you don’t know what to do. Let’s talk about it today, when the foreign exchange market is shaking. , What should we do!
What is shock market
First of all, you need to know what foreign exchange investment is, and how many volatility methods there are in the foreign exchange market, including rising volatility, falling volatility, low volatility, mid-level volatility, and high volatility. Each market has its own volatile market trading techniques. In fact, there are similarities and slight differences. The shocking market basically refers to the state where both the long and the short are evenly matched. The characteristic of this trend is that there is no obvious rise or fall between the two parties, so it is very difficult for investors to operate.
What is shock market
Although there are similarities and differences, as long as there is a little abnormality, it will affect investors’ judgment of trading timing. Therefore, when there is a shock in different market positions, investors take different measures and operating methods.
The first type: rising shocks. By studying the trend of foreign exchange, it can be found that some foreign exchanges are operating in a regular upward channel, so investors can draw the upward channel of the stock, and sell it when the exchange rate runs to the upward pressure of the upward channel; run to the downward spiral of the upward channel When supported, buy.
The second type: falling and oscillating. When the exchange rate moves to a descending channel, it is best for investors not to operate. If you need to pay attention to the operation: do not buy when the exchange rate is extremely oversold, and sell on the edge of the falling channel; fast in and out; not excessively greedy, and make a profit
The third type: low shocks. At this time, the exchange rate has entered a continuous decline and has continued for a period of time, and the trading volume is extremely shrinking. In this market, once the chips are shaken out, it is difficult to withdraw them. Therefore, investors can consider buying signals more, and would rather be trapped than take a short run. At the same time, if the low volatility increases, it indicates that the big market is about to occur.
The fourth type: median shock. At this time, although there has been a wave of rising prices, some foreign exchanges have not yet started, so it is the time to sell the foreign exchange with a larger increase, and it is the time to buy the foreign exchange that is about to rise.
The fifth type: high shock. At this time, the exchange rate has continued to rise and is in the final stage of rising, with great risks. However, because it is in the final stage of rising, the exchange rate has a larger amplitude and more opportunities. It is a high-risk and high-yield stage. If investors need to pay attention to the operation at this time: use short-term indicators; pay attention to whether the callback is in place when buying; pay attention to changes in short-term support and pressure lines; set stop loss points
The volatile market is one of the most dangerous in the foreign exchange market.
The shocking market is one of the most dangerous in the foreign exchange market. If you are not familiar with market operations, investors are advised not to participate easily. Although this kind of market hides huge investment opportunities, there are also many risks associated with it. Everyone is performing various shock operations. Always set goals in advance and don’t fight to death.
What should we do when the market fluctuates?
In the volatile market, traders need to know the contrast of the strength of the disk, and at the same time need to figure out whether the market is operating in a trend or in a state of consolidation. For medium and long-term traders, we suggest that it is best to wait and see short positions; for short-term traders, it is recommended to sell high and buy low along the support and pressure lines, or just do the intraday ultra-short-term market. All in all, either short positions and wait and see market changes, or only do ultra-short-term operations within the day.
How is the market turbulence over?
The breakout pattern is the beginning of all trends and the beginning of all effective trading.
There are roughly the following criteria for judging whether the trend line breaks through:
- The degree of crossing.
- Whether the innovation price breakthrough for two consecutive days.
- Whether it matches with the trading volume.
The above are five ways to deal with the volatility of the foreign exchange market. These five foreign exchange trading techniques to avoid principal losses will bring beneficial effects to everyone if they can be effectively used in the foreign exchange market.