For foreign exchange traders, the first step in entering the market is to open a position. It is indispensable to learn the profitable foreign exchange opening skills. How to open a position is directly related to subsequent transactions. The technical analysis mainly depends on your own judgment of the trend direction. The judgment of the trend direction is a prerequisite, and the rest is controlled by a fund management following the trend.

There are many ways to open a foreign exchange investment position. Here are a few examples of wrong opening methods:

  1. After gaining a few points, he escaped, and he waited after entering the quilt, so it is called death waiting because it may wait until death. And waiting until death refers to those with little funds and the account is dead; those with huge funds will wait for a lifetime until the end of life.
  2. Stop the loss once for the first time, and double the order for the second time. If you keep making mistakes several times, you may not be able to trade.

The grasp of the direction of the foreign exchange trading market and the grasp of short-term callbacks are very important success factors. If a trader can think that he can grasp the general trend of the foreign exchange market, he can use the following trading strategy.

  1. Grasp the general trend well, the iconic price of the general trend turning is your stop loss reference point, and the difference between this point and the current price is irrelevant.
  2. The short-term trend should be grasped well. The short-term callback is an opportunity to reopen a position, not an opportunity for backhand operation.

If the short-term trend is not well grasped, such as after opening a position, it is considered to be a callback, and the position is closed. As a result, it has not callback and cannot be bought back, so give up and do not chase it.

What are the correct foreign exchange opening skills?

One: the principle of taking advantage of the trend

  1. Enter the market cautiously at all times, even if it is a homeopathic operation, you must also trade on a basis and strictly control the face
  2. If the trend does not change signals, it is necessary to strengthen the confidence of holding positions and not to close them easily.

Second, the principle of opening positions against the trend:

Control is the first priority in contrarian trading to prevent irreparable losses

Opportunities for rebounds will always appear, but many rebounds are not suitable for trading: small-level rebounds, weak rebounds, and the first wave of rebounds. These opportunities are significant big risk opportunities. 3. Homeopathic trading can even be sometimes As long as the risk can be controlled well if there is no basis, and in contrarian trading, even if the risk can be controlled well, do not trade without basis.

Three, position selection

After determining your own position building plan, how much money you invest is of vital importance. One of the biggest characteristics of margin foreign exchange trading is that you can use a small amount of money to leverage a very large trading volume, but this is trendy. Once the funds are not well managed, it is easy to cause major losses or even liquidation. Before opening a position, you should first determine the funds you can enter the market and determine whether to add additional funds. When the total funds entering the market have a spectrum, you must adopt different position allocations according to your own trading mode. At the same time, your own trading habits, trading modes, and trading strategies also need to be configured differently.

How to open a two-way position?

Two-way position opening means that investors can choose to enter the market at any time according to their own research and judgment of the market and time arrangements. They can go long (short operation to obtain profit. Investors have no restrictions on the number of trades, and the time arrangement is relatively free. The old foreign exchange sums up the actual trading experience of foreign exchange options and believes that two-way open position is a good trading strategy. Especially when the exchange rate fluctuates sharply, its advantages are more obvious. If you open a short hand and a long position at the same time, then The rise or fall of the future price has no effect on you. If your long order rises, the short order must be lost. This is not the case for option trading. If you buy a call option and a put option at the same time, each call will be 2 For the US dollar, the put price is 3 US dollars per share. If one direction rises to more than 6 US dollars, you can make a profit. For novices to open positions, full position trading is not recommended, because in futures and options such as small and broad transactions , Full position trading is relatively taboo. If the operation is improper, the entire army will be wiped out. This is a big taboo in trading, and traders with a little trading knowledge will not do this. Of course, the profit of full position trading is also very high, when you really From a novice dragon to a veteran, you can use this method of profit and high.

Long and short two-way open position profit method?

No matter what kind of foreign exchange transactions are being conducted, it is best to chase active varieties, open two-way positions at the same price, and use price inertia to release positions in the opposite direction. Establishing a position in this way can completely eliminate the subjective speculation of intraday price fluctuations, just let the market tell investors how to operate. Secondly, the operation is concentrated in the active varieties, and once this variety goes out of a certain trend price in the market There will be an inertia of this trend, and what investors have to do is to use this inertia to gain income.

For novices to speculate in foreign exchange and open positions, we recommend Jin Yuta’s plus method:

Pyramid plus method means that the more funds are added later, the less money will be added. Assuming that the investor has a principal of 100,000 U.S. dollars, the investor buys 20,000 U.S. dollars of euros at point A and the euro rises to point B. Investors believe the euro will continue Rising, but there has been a period of increase, and the future upside may be relatively limited, so the amount of funds when buying again is reduced to 10,000 U.S. dollars to point C. The euro is still rising, and investors still believe that the euro will continue to rise, but this The upside may be even smaller at the time, so investors invested another $5,000 in capital. This successively decreasing addition method is the pyramid addition method.