The operation difference from firm offer to margin

A lot of friends can have a very good profit when they make a firm offer, but they have a serious loss when they turn to margin. As far as we know, many friends of the firm offer will have a basic analysis of the trend. For example, they will analyze the rise of the euro, and then enter the market to buy the euro. If the euro really rises, they will continue to hold it; However, if the euro falls, the general practice is not to close the position, but to continue to hold. Interestingly, the result is that after a few days, the euro will rise, but it may be too late to stop. Therefore, there is such a view among the investors of the firm offer that they don't stop loss and hold it in their hands no matter whether it goes up or down after buying. As for the basis of closing positions, many people also set their own standards. For example, they hope to make a profit of 3% or 200 points, and then close positions when they reach the target.
In fact, there are many problems in this, which is also the reason why the margin can not be operated with the method of firm offer.
First of all, because it is a firm offer, the loss can only be reflected until the position is closed. If the position is not closed, the loss will not be included in the account. But the margin is floating profit and loss, loss to a certain extent will be forced to close. Moreover, the funds manipulated by margin are often tens or even hundreds of times larger than the invested funds, and the investors in the firm offer have just transferred to guarantee that they are still used to heavy position operation. As a result, the account balance can not bear the floating loss, leading to the burst of positions.
Secondly, a large proportion of investors in the analysis of the trend refer to the fundamentals, as for the grasp of the specific entry and exit time is often lack of training and experience accumulation. And margin trading is very attention to the timing of admission, dozens of points for the firm offer may not be anything, but for margin may be a very attractive profit space. Therefore, the transition from firm offer to margin should pay attention to detailed account and operation details.
Finally, the most important stop loss concept. Analyzing the market and mastering the entry and exit points all need the cultivation of technology, which can be seen from books or learned from others. But stop loss can only be controlled and experienced by oneself. Stop loss is the restraint of human weakness in the process of investment. Just after the opening of the position, the first thing we face is the loss of handling charges and the loss that can not produce profits. Stop loss is the control of cost. When people continue to hold positions with profits, on the one hand, they think that the current profits are the biggest. On the other hand, they hope that the future profits will be bigger. Therefore, they are constantly hesitating and hesitating about whether to close positions. They also want to close positions immediately, and they are afraid that they may miss more profits after closing positions.
Stop loss is the control of people's greed and fear at this time. Investors who have just transferred from firm offer to margin must get used to stop loss. The core of every operation plan is stop loss. Only by controlling and tolerating small losses can profits grow steadily.