“Five unique skills” in foreign exchange speculation

Just as swordsmen in the Jianghu must master some unique skills, Huimin must also master some special skills when speculating in foreign exchange, mainly including trend, buying point, looking for target, stop winning and stop losing.
Following the trend is the magic weapon to make profits in any investment market, so the first move is to "know the trend". Trend is a medium - and long-term concept, representing the direction of price changes over a long period of time, including three directions: rising, falling and consolidation. Therefore, it is very safe to recognize the trend and adopt the traditional operation method of "high throwing and low absorbing". If you want to "chase up and kill down" against the market, you must focus on short-term operation.
"Waiting for the buying point" is the second move we must master. Huimin can use the golden section line method, trend line buying method and other methods to achieve. Sun Tong said that there is no difference between the advantages and disadvantages of different methods, only whether they are suitable or not and whether they are convenient for investors to operate.
"Finding a goal" is the third move. Huimin can also use the golden section method to achieve the goal. The goal is only the goal, which may not be achieved or over fulfilled. It is not advisable to stick to the goal. The key lies in the choice after achieving the goal, which is to close or hold the position? It depends on the situation.
"Stop winning" and "stop loss" are two complementary moves. It is very important for investors to formulate stop loss and stop win strategies“ Why stop winning? " Sun Tong said that although it is a bit difficult for investors with a strong mentality to achieve this, it is the only way to maximize your profit in a unilateral situation. If you don't use the method of stop winning and the market breaks suddenly, you will pay a high cost and even lose a big market. The determination of stop win price should move up (or down) with price fluctuation. In the process of rising, the closing price of the previous day is the reference. In the consolidation trend, we should take the initiative to close the position.
Similarly, stop loss at the first time is also a test for investors. When the price falls to the set stop, stop at the right time. Which support position should stop loss be set? How much is the stop loss? In this regard, sun Tong said that it is best to set up a stop loss based on his own feelings and understanding of the market. In the medium and long-term trading, stop loss is not measured by the number of points, but by the importance of support. For example, the price breaks through the long-term upward trend line, and breaks through the 30 week and 60 week moving average which has been proved to be effective for a long time. In order to reduce losses, try to build positions near the key support level. For medium and long-term transactions, 1% stop loss is not much.
Clever layout to profit
When you have these profit model factors, how to build a carriage and use the correct way of thinking to make the profit model run smoothly? Sun Tong drew a flow chart (as shown on the left). He said the process could reduce the interference of subjective factors in decision-making. For example, when the stop is triggered, what should Huimin do? In fact, the right way is to wait and see. Because the stop loss trigger indicates that the customer's original buying and selling direction is opposite to the market (at least in the short term). At this time, Huimin should calmly consider whether there is any deviation in the original operation idea according to the market situation, and whether it needs to be corrected, so as to adjust the best mentality.
Don't be greedy, don't be timid and look for opportunities
It is impossible for investors to draw the trajectory of future price changes in advance, they can only make predictions according to historical data and certain methods, but no matter how rigorous the analysis and prediction are, they may make mistakes. Therefore, they must establish a correct mode of thinking and maintain a good mentality. Abstain from "greed": keep your own profits; Avoid "timidity": be bold to win.
At the same time, he reminded foreign exchange investors not to change their minds rashly. The price and plan of entering the market on the day set in advance should not be changed easily due to the influence of current price fluctuation. Second, the market is not clear. When you don't feel the market, please give yourself a holiday. Don't force yourself into the market. Thirdly, we should pay more attention to potential than price. After recognizing the general trend, we should attack decisively. We should not miss the opportunity to buy and sell for coveting a few small ideas. The key to the successful implementation of these ideas lies in self-discipline.