Several common foreign exchange trading methods

For trend trading, for the loss or failure of foreign exchange trading, I mainly divide it into five reasons: first, bottom fishing against the market and selling the top. Second, coming out too early and not grasping the main band of the market. Third, the homeopathic market is too short, or false breakouts. Fourth, the homeopathic operation is washed. Fifth, chasing up and selling down.

First,Societe Generale InvestmentCountermarket bottom fishing

The first counter-market operation is bottom fishing, which is why most people lose money. Constantly buying bargains because the price is too low in an obvious downtrend, or thinking it has fallen too deep and rushing to rebound. Constantly selling because the price is too high in an obvious uptrend, or thinking it has risen too fast and going short.

These are very layman's trading methods and habits. Bottom fishing is only effective in sideways volatile markets, but even so, small funds and retail investors should not go short when they are rising sharply, but buy when they are falling sharply. They should wait until they reach obvious resistance levels and then go short when the market is weak, or buy when they fall to obvious support levels and appear strong. This is the safe way.

If you take advantage of the trend, then you can only be wrong countless times, that is, at the turning point, but if you go against the market, then you are likely to be wrong countless times in exchange for the correct one. In response to this, the correct way should be to give up the top 10% or even 20% of profits and pursue stable and reliable homeopathic profits. That is to say, you must wait until the trend is established before entering online foreign exchange trading. Such profits will be less than the so-called experts who occasionally copy the bottom and sell the top, but it is indeed the most long-term stable profit.

In fact, the definition of a trend is very simple and clear. An uptrend is a price trend that keeps rising at high and low points, and a downtrend is a price trend that keeps falling at high and low points. If you can ignore small fluctuations and noise, in most cases. As long as you want to see it, the market trend is very clear.