Every investor in an investment product hopes that their choice is correct and safe and can profit from it. Foreign exchange is no exception. In the foreign exchange market, everyone's trading methods are different, and everyone's profit models and trading strategies are also other. But all in all, it can be roughly divided into the following profit models. Today, I would like to introduce to you some standard profit models in foreign exchange transactions?
The first is value investment, which is based on the fundamental analysis of the economy, such as short-term interest rates, inflation rates, GDP, trade balance, employment, and other relative changes in market external factors.
Second, trend trading. Most people are homeopathic traders. When the trend is clear, they will actively follow up. At this time, they mainly use chart analysis (average moving system plus several oscillatory indicators) to judge and track the development of the market. In the foreign exchange market, most people use simple moving averages (such as 4-9 or 5-40 day averages), regular trading, reverse short selling, entering and exiting when overbought and oversold indicators appear, etc.
Third, arbitrage trading. The typical method of this strategy is to borrow a low-interest-rate currency, convert it into a high-interest rate currency, and then borrow or invest in other high-yield financial assets with higher interest rates to make a profit. This strategy is easy to master because the monetary policy for determining the interest rates of the two currencies is relatively rigid.
The fourth is synthetic trading, which means that the strategy can be changed at any time, or multiple systems can be used simultaneously. Experienced global hedge fund managers can do this. The combination of flexibility and highly specialized skills has proven to be an impressive investment performance, often achieved through integrated trading strategies.
The above four are the investment income models of general foreign exchange transactions collected by Fortune Foreign Exchange. When we conduct investment transactions, everyone cannot fully grasp profitability. Any profit is the result of analysis, summary, and actual operation of probability problems. At the same time, we should handle different transactions with a correct and positive attitude.