Trading Knowledge

Forex trading margin is double-edged sword  [2016/6/24]

Among the many in finance and investment, foreign exchange margin trading Operators easier way of managing money. Colleagues also because two-way trade foreign exchange margin transactions, to deduct the majority of investors and other advantages are accepted. But at the same time also reminded investors, as long as there is a risk of the investment Jie, margin trading industry is no exception.

Forex Margin Trading reason to attract the majority of investors to join, because its own advantages:   

1, And 24 hours a day, ready to enter the market transactions; 
  
2, Two-way trade, not only can buy and can sell;    

3, The use of leverage, a small broad;    

4, Controllable risk, you can set the stop loss or take profit price;    

5, Reduced fees, less transaction costs;    

6, High transparency of information, all market news and data are public can not easily be manipulated;    

Because of these characteristics superior to other types of investment in Forex trading, so full of joy large influx of investors in the foreign exchange market, the results are a loss position, which is what caused it?   

Yes, foreign exchange margin trading is a highly profitable investment, but investors are blinded by interests, not knowing that there is a high interest in high-risk co-exist. Margin trading can usually invest a small mistake, because the amplification lever, the deficit might be your principal, or even more. 

The following investors in foreign exchange margin trading often produces several aspects of loss:    

1. Select leverage greater risk amplification;    

2. Gambling mentality to trade;    

3. The lack of knowledge of foreign exchange, blindly follow the trend;    

4. Improper financial management;    

5. Risk awareness is poor, do not set stop loss and profit;    

6. Greed heavier.

Speculation on the reasons for the failure of foreign exchange  [2016/6/24]

For foreign exchange speculation investors, after struggling for some time after the discovery of their final earnings fell far short of expectations a lot of people, the causes of this phenomenon boils down to nothing more than the following categories.    First, the use of the funds as a market from the present life, the psychological pressure is too large.

Want to be successful in foreign exchange speculation master, first of all have plenty of investment capital if losses generated as to affect your life, remember not to use the funds as a living capital, the financial pressure over the General Assembly's Trade mislead your investment strategy, Acts increase trading risks, and lead to greater error.    

Second, do not free demo account, direct market operations. Beginners learn to be patient, step by step, do not rush to open a real trading account foreign exchange speculation. Do not compare with others, because the learning time required for each person is different, the experience gained is also different. In the learning process simulation transaction, your main goal is to develop a personal strategy and operating patterns, when your chances of increasing profit, gradually increase the amount of profit per month, that you can open a real trading account fry the foreign exchange.    

Third, that their good luck, luck is completely foreign exchange speculation. When a profit of transactions more than the loss of transactions, and account for the increase in the total situation, it means that foreign exchange speculation has been found to do the trick. However, if the loss in 5 transactions, the 000 yuan, in another transaction profit, 000, although the total amount of your account is to increase health, but do not self-righteous, which may be just lucky, or you take the risk to trading largest trading port numbers to win, you should exercise caution, adjust operating strategy.    

Fourth, not only intuition trading strategy. The creation of the result in the simulation trading profit is not enough to understand the causes and develop a personal profit profits generated operating practices is equally important. Intuition transaction is very important, but rely on intuition to do the transaction is unacceptable.    

Fifth, there is no stop. As speculation foreign exchange transactions should also be established in the range of loss can be tolerated, use of stop-loss transactions, and avoid emergence of huge amounts of loss, loss account funds by the scope of the case, it is best set in 3-10% of the total account, when the amount of loss has reached the limits of tolerance, not a desperate attempt to find an excuse to wait for the market swing, should immediately open, even if the market is really rotating after 5 minutes, do not wan interest rates, it has been removed because the market continues to deteriorate, the risk of loss of infinite expansion. Necessary to develop trading strategies, keep in mind is to control the transaction, rather than control of their transaction.    

Sixth, excessive trading. Foreign exchange speculation should measure the amount of transactions by account, do not over-trading. If the account funding is less than $ 3000 for doing a deal; account funds ranged from $ 3000 to $ 5000, unless you can determine the current trend in your favor, otherwise the transaction port number should not be more than two; if the account balance there, 000 transactions port number should not be more than three. According to this rule, it can effectively control the risk, once the transaction an excessive number of mouth is unwise, it is prone to uncontrolled losses.    

Seventh, not completely execute trading strategies, often find an excuse to overthrow the original decision. Fried largest foreign exchange trading and will destroy everything fatal error is when (the loss has been extended to a lost position, 000) began looking for an excuse not to recognize compensation open, thinking the market may be a sudden swing? you have continued this idea, we no longer determined to end this loss continue to expand positions, but only waited irrational market swing. Changes in the market is merciless, not because anyone's silly to wait while rotating the market. When the loss of more than 1,000 or more, the final exchange speculation traders will be forced to open, traders not only lost money also lost courage, Yi who will lose confidence in ourselves and decided that the cause of the error is very simple -"greedy". 0 losses, will not let you lose the opportunity to make up for losses, and potentially more profitable next transaction, but the loss in one or two transactions, 000-, 000, ruined the opportunity to make more money , this loss is difficult to fill level. To avoid this fatal error is generated, it is necessary to remember a simple rule - do not let the risk more than the original has been set tolerable range, once the loss has to set the limits of the original, do not hesitate to open.

Foreign exchange speculation are often mixed, but just remember that our ultimate goal is profit, and risk awareness do time it is easier to succeed, after all, not everyone is a genius of foreign exchange speculation, know for yourself go backward, resolutely talent to perform operations plan is the smartest investors are likely to reach the ultimate goal.

The choice of foreign exchange margin trading approach  [2016/6/24]

Approach the choice of location is the key to each kind of foreign exchange transactions, for foreign exchange margin trading is no exception, the choice of a good location can guarantee to achieve the goal of profitability, but also be able to maximize the key to reduce the loss.

Foreign exchange margin trading the ideal approach position is the key point of breakthrough and short-term upward trend at the beginning stage

Foreign exchange margin trading breakthroughs have many cases, one is an important resistance area, where generally refers to the previous high point, with a sense of  integer points; the other is a stage of a new high.
    
The short-term upward trend in the beginning of the stage is often referred to in some special short-term upward trend. Such as foreign exchange margin trading in the short-term upward trend after the breakthrough trend, the medium-term upward trend adjusted short-term rise.
    
The location selection of foreign exchange margin trading approach often requires a comprehensive many factors to consider, but it is best to avoid the rise or fall of the extreme zone Although the foreign exchange margin trading is a major advantage is that both can buy up and can buy or fall, but why not use the most safe way to make money.

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