In stock trading, investors may often hear the term quilt. In fact, quilt also occurs in the process of foreign exchange transactions. Quilting refers to the situation where investors lose money in foreign exchange transactions but do not want to close their positions, because once they close their positions, they will cause greater losses. How to avoid being caught in foreign exchange transactions? The editor below will introduce the methods to avoid being trapped in foreign exchange transactions.

How to avoid being caught in foreign exchange transactions? In fact, the main reason for investors being locked up is that they are not standardized in their trading behavior in the daily foreign exchange trading process. There are several ways to avoid being caught in foreign exchange transactions:

First, you must set a stop loss every time you place an order.

Stop loss is the protector of every transaction. As long as we set a stop loss point for the transaction and adhere to the execution, we can ensure that our transaction can continue without obvious unestimable losses and losses. The hold-up situation.

Second, pay attention to daily trading habits

You cannot buy after the exchange rate has risen sharply, especially when it has risen suddenly after a long period of time. It cannot be bought after a long-term rise, especially after the announcement of major positive news that the market has already anticipated. Can not buy after rising for a period of time, the daily K-line oscillates at a high level.

Third, keep a rational mind

Trading in the foreign exchange market requires investors to have a calm and sensible brain, able to stick to a normal mind to think about the problems in the transaction, no matter how good at trading, the risks are objective, and you must take risks before trading. The preventive work can effectively prevent the occurrence of being stuck.

Fourth, avoid using multiple analytical methods

Miscellaneous but not precise, many traders often talk about the combination of multiple technical indicators when analyzing. Sometimes when the first indicator is used, the analysis is in the right direction, and when another indicator is used, another answer is given. , But don’t know how to choose. So sometimes, you only have to choose a better technical indicator analysis, and if the result is wrong, then give up.

Fifth, trade in compliance with market trends

The market is always right. This is the principle of foreign exchange trading. Even if you are optimistic about the trend of a certain currency pair, once the market performance does not match your expectations, you should stand decisively on the side of the market and take the current situation as the main starting point. Don’t be lucky. You should sell decisively when the situation is bad.