What is foreign exchange short-term trading

Short-term foreign exchange trading refers to a foreign exchange speculation strategy of fast forward and fast exit. Generally, the holding time is very short.

For example, the popular online foreign exchange intraday short-term trading strategy, people who use this type of strategy, from placing an order to closing a position are generally controlled within 24 hours.

Celebrities who use this trading strategy, such as Japan’s Fairy Four Price.

Disadvantages of this strategy: transaction costs are high, and there are certain requirements for the individual’s psychological endurance.

The purpose of short-term trading is to maximize the use of funds to maximize profits.

According to different trading cycles, foreign exchange transactions can be divided into short-term, medium-term and long-term. Generally speaking, short-term refers to transactions within 15 minutes. Compared with medium and long-term transactions, short-term transactions are more difficult and require investors to have more High operating skills. First State Finance teacher summarized five common practical skills, let’s take a look.

Foreign exchange short-term trading

What are the short-term foreign exchange trading strategies?

Foreign exchange is divided into short-term trading and long-term trading in terms of the length of the trading cycle. Short-term trading is also a trading method that most investors prefer to use, but short-term trading has a very short holding time. It is generally controlled within 24 hours from placing an order to closing a position. , There are higher requirements for investors’ technology and market response capabilities. Therefore, in order to make simple profits, investors must understand some practical skills.

  1. Learn to read the disk

Because it is an intraday short-term operation, the main idea of ​​our operation is to follow the technical trend of the day and place orders at market prices as much as possible. So in the early stage, you can learn to watch the 1-minute disk, slowly accumulate experience, and then look at the 15-minute and 1-minute disks. This is conducive to the improvement of market analysis capabilities and the grasp of trading opportunities.

  1. Find the right time for admission

The timing of entering and exiting the market for short-term foreign exchange trading is very important. Although there are opportunities every minute and every second, many people still need to wait patiently for the best trading opportunity. Do not trade without callbacks, wait for time and change bars, just wait for candles When the chart goes to the position, such as a swash plate trade with the trend, when the candle chart pulls back and touches or crosses the 14-day moving average, you can buy when you are sure of profit, and buy in the opposite direction from the general trend.

  1. Execute the transaction plan

If you are worried that you are prone to errors in actual transactions, you can formulate more trading plans for yourself and strictly implement them, such as setting trading rules, not contrarian trading, not chasing orders, etc., determine the types of transactions that you often do, and the frequency of daily transactions. Etc., the pursuit of stable and safe profits, and avoid blind transactions.

  1. Focus on transaction quality

Whether foreign exchange short-term trading is profitable does not depend on how many times you do it, but whether your transaction maintains a high profit quality. If the number of transactions is small but the accuracy is high, the profitability effect will be very obvious and it will also help reduce transaction costs. Control transaction risks. For example, the minimum investment of Real Mart Financial hmarl is $1. If the transaction quality is high, extremely high returns can be achieved through leverage.

What should I pay attention to in foreign exchange short-term trading?

  1. Grasp the trading time

The short-term trading time is very short and will not affect the normal work and rest of investors. On the other hand, short-term trading requires traders to keep an eye on the market within a short period of time and keep abreast of market changes, so specific trading hours must be arranged.

  1. Choose trading products appropriately

Short-term trading profits need to choose market periods with relatively large asset volatility, and at the same time choose potential hot product transactions, such as EUR/USD and GBP/USD in foreign exchange assets. Unpopular products have small volatility and less profit opportunities, which is not a good choice.

  1. Master the technical analysis method

The short-term trading time is extremely short, and in many cases the fundamental analysis method is difficult to work. At this time, the technical analysis ability in a short period of time is mainly used. Traders use technical indicators to judge the market trend and find the correct entry point. From this perspective, short-term trading is suitable for veterans who have a certain amount of investment experience and master several technical indicators, but not suitable for novices who have just entered the currency market.

  1. Grasp the principle of buying up and not buying down

In short-term trading, you must first consider the probability of profit. When trading, try to adhere to the principle of buying up and not buying down. Avoid buying at the highest point in an upward trend, and avoid buying at the lowest point in the process of falling.

  1. Set the stop loss point

The stop loss point in short-term trading is very important. Investors generally choose to enter the market when the market fluctuates greatly. Although they may gain greater profits, they must also bear the transaction risk. Setting a stop loss point can effectively reduce trading losses. Help ensure the safety of funds. In addition, in the process of trading, if there is a sudden reversal in the market, the position should be closed immediately without hesitation.

The most important thing in short-term foreign exchange trading is the technical analysis method, especially the technical indicators such as moving average, Bollinger Bands, nacd, kdj, etc. There are two ways to master commonly used indicators, one is to research and teaching videos, and the other is to consult the first financial professional Mentors, it is recommended to do both for faster progress.