Foreign exchange trading technology refers to a method of completing the exchange process of one country's currency with another country's currency through a certain method. Unlike other financial markets, the foreign exchange market has no specific location and no central exchange. Instead, transactions are conducted through electronic networks between banks, companies, and individuals. For foreign exchange transactions, it is to buy one currency in a pair of currency pairs at the same time, and sell another currency. Foreign exchange is traded in the form of currency pairs, such as Euro/U.S. Dollar (EUR/USD) or U.S. Dollar/Japanese Yen (USD/JPY.
Take advantage of the trend
Foreign exchange trading different stock trading. When people buy and sell foreign exchange, they often focus on the price one-sidedly, while ignoring the upward and downward trends of the exchange rate. When the exchange rate rises, the price becomes more and more expensive, and the more expensive it is, the less you dare to buy; when the exchange rate falls, the price gets lower and lower, and the lower the price, the cheaper you feel. Therefore, in actual transactions, they often forget the motto of "follow the trend" and become wrong traders who go against the market.
① In the upward trend of exchange rates, there is only one point that is wrong to buy, and that is when the price rises to the apex. The exchange rate is like rising from the floor to the ceiling and cannot rise any more. Except for this, it is right to buy at any point.
②In the trend of exchange rate decline, there is only one point that selling is wrong, that is, the exchange rate has fallen to the lowest point, as if it has fallen to the floor, and cannot be lowered. Besides, selling at any point is correct.
Inexperienced investors, after buying or selling a certain product at the opening, when they see a profit, they immediately think of closing money. Profit-closing positions seem to be easy to do, but the timing of capturing profits is a science. For example, Elan Financial analysts concluded that experienced investors will decide when to close the market based on their own judgment on exchange rate trends. If he thinks that the market will develop further in a direction that is beneficial to him, he will be patient, knowing that it is beneficial and not making money, and let the exchange rate develop in a more favorable direction as far as possible, so as to continue the profit. Flattening at the first sight of a profit does not mean closing at the first sight. In the end, it might be profitable.
When you feel that the trend of the foreign exchange market is not clear enough, and you lack confidence, it is better not to touch. If you feel unsure, it is better to do nothing and patiently wait for the time to enter the market. If the market has already opened, it is better to leave the market on a flat plate when there is a feeling of "the food is tasteless, and it is a pity to abandon it". Don't overly care about profit and loss, and take the risk of uncertainty.
See the timing
In the foreign exchange market, some news often comes out, some news proved to be true afterwards, and some news proved to be nothing but rumors afterwards. The practice of foreign exchange investors is to buy immediately when they hear good news, and sell as soon as the news is confirmed. And vice versa. When bad news comes out, immediately sell, and once the news is confirmed, immediately buy back. The foreign exchange market is a very sensitive trading market. The so-called "knowledge at the slightest" and the storm is the psychological reaction of speculators. Starting from the purpose of profit, we must follow the market.
Investing in foreign exchange trading is very risky. Profit and loss are inevitable. I hope to make more profits and lose less, and I don’t want to be a victorious general. People who are not mentally prepared to lose and who are bent on making big money can hardly guarantee that they will not lose money in the end. The correct attitude is that there is both hope of earning and preparation for loss. After buying a foreign exchange, you must analyze the trend of the market. If the market is in your favor, you should wait patiently and strive for the continuation of profits. However, when the market is at your disadvantage, especially when you feel that the market is not right, Don't worry too much about gains and losses. If you lose a little, you will lose a little. Too much care, and feel unconvinced at a loss. If you make a mistake, you will wait and wait. Unexpectedly, sometimes the more you wait, the worse.
In foreign exchange trading, sometimes mistakes are made in order to force a few points. Some people set themselves a profit goal after completing a transaction before preparing to close the market. I kept thinking about the arrival of this moment in my heart. Sometimes the price is close to the target, and the opportunity is good, but there are still a few "points" not in place, and the money could have been flattened. But due to the original goal, I always prayed there in my heart. Experience tells us that sometimes there is no more than a few points. Don't miss the opportunity to make a few more points and cause losses.
If you have confidence in the exchange rate trend, it is best not to calculate the small difference, buy if you should buy, and sell if you want to sell, and seize the best opportunity. Indecisiveness often delays the opportunity. What should be earned is not earned, and what should not be lost is lost. This is how the market teases people.
Establishing a position
Board game refers to the market price of cowhide, with narrow volatility. The game is the performance that buyers and sellers are evenly matched and are temporarily in equilibrium. Regardless of the game in the upward journey or the downward journey, once the game ends and breaks through the resistance line or the support line, the market price will break through the barrier and move up or down, showing a leap forward. This is a good time to enter the market and establish a position. If the game is a long-term barrier, breaking through the position established during the game will surely make a big profit.
"Pyramid" overweight means that after the first purchase of a certain currency, the price of the currency rises. Seeing that the investment is correct, when we are happy, we want to increase our investment. However, the overweight should follow the principle that "the quantity of each additional purchase should be less than the previous one". In this way, the number of additional purchases becomes smaller and smaller, just like a "pyramid" model, the higher the level, the smaller the area. Some people buy twice as soon as they see the right buy when trading. Once the market drops sharply, it is inevitable that they will suffer heavy losses. As for pyramid investments, once the market trend drops, the losses are relatively light due to fewer positions established at high positions.