Forex Trading Skills for Novices

Newbie Trading Status

The novice I am talking about here refers to those who have newly opened an account and have just deposited funds. A novice who has just made a deposit or opened a new account will have impulsive behaviors after the funds arrive in the account: eager to make orders, eager to make money, lack of patience, and will spend too much time watching the market in a day, even if it is not trading. Active time period; crazy trading every day, one will be short, one will be long, just come out and re-enter. Novices of this type are destined to blow out in less than a few weeks, and they don't know how to blow up after they blow up.

The average novice, the first deposit is destined to explode! I am saying that it will explode, no matter who it is! No matter how calm and calm you are, no matter what market you are a master in, almost no one can Let the first deposit not explode, of course, except for the master to help you operate. Based on my conclusion, novice depositors must consider the amount of deposit. If your funds allow, you can put in $1,000. If you don't have much spare money, you can put in $600. Because no matter how much you earn, you are destined to explode, so $500, $1,000, $5,000, and $10,000 will also explode, bringing you the same experience and the same results, and you will know the first time How much money have you put in.

After the first gold explosion, the impulse will make you make a second deposit. It’s best to copy your order, find a time to stop trading, and analyze it. Carefully analyze it yourself, the order you make every day, the time of the transaction, the situation at that time and the background of the market, a The reason for the failure must be found out. Then re-analog for a short period of time, wait for your mentality to stabilize, and then make a second deposit, and the deposit amount can be controlled to be double the previous one.

money management method

If you want to succeed in anything, you must have a reasonable plan. Only in this way can you be able to face any situation calmly. A management trainer once said that a perfect plan is divided into four steps. The first is clear goals, the second is planning steps, measures and time limits, the third is to check the plan, and the fourth is to strictly implement. The same is true in foreign exchange trading. Based on the above methods, let's talk about how to formulate a set of fund management strategies based on foreign exchange transactions.

The first step is to clarify the goal. The so-called clear goal is how much money you plan to invest in foreign exchange transactions, how much money you earn, and how much money you can afford to lose. Only in this way can a reasonable fund management plan be formulated according to the target. Of course, the chosen target must be based on a conventional basis and a rational basis. Here we need to tell all entry-level investors that although foreign exchange trading is a hugely profitable industry, earning money reasonably is a long-term and effective trading model.

The second step, planning steps, plan what kind of trading mode is usually used to obtain profits, whether to make orders through frequent short-term trading or long-term fishing for big fish. Exit the market when how much money is earned, and close the position when how much money is earned. Through a reasonable profit and loss model, 2% of the total capital is the reference target, that is to say, when the profit exceeds 2% of the total capital, the transaction will be terminated, and when the loss exceeds 2%, the market will be withdrawn. Account, every time you earn $20 or lose $20, the transaction will be terminated, and the lot used is one-thousandth of the total capital. Take the account of $10,000, making 1 lot is the most correct and most effective. Maximize risk-averse traded lots. The establishment of these rules can ensure that there will be no big losses. Although high profits cannot be obtained, it is enough to exceed one month's salary of a senior white-collar worker.

The third step is to test the plan. No matter how perfect the theory is without combining with practice, it is considered to be on paper. After determining your own trading strategy, you start to use the analogy of foreign exchange trading to test whether the developed capital management strategy is available and whether it can be used for yourself. bring stable profits. To test whether your strategy is qualified or not, you must go through countless tests before you can determine whether it is finally implemented. The fourth step is to strictly implement it. In fact, the fourth step is the core of the foreign exchange trading capital management strategy. If the perfect capital management strategy is not strictly followed and implemented, it is empty talk, and the loss caused by a random transaction will all be lost. It can be fatal, foreign exchange trading cannot stand any deviation, so personal emotions, greed, selfishness, impulsiveness, etc. must be thrown away. So as to rationally use their own designated money management strategy.

Forex Trading Strategy

It is unrealistic to want to make a profit as soon as possible with our own money management strategy. We also need to have a set of foreign exchange trading strategies suitable for ourselves. Let's talk about the trading strategies for beginners. Novices must absolutely abide by the following trading rules to delay their liquidation time in order to gain richer real trading experience (there is no absolute master in the world, you must do this! Do it unconditionally!):

1. No matter which time you make a deposit, please calmly observe it for a week, and don’t want to make an order right away. Maybe you don’t believe it: the main force or the market maker is staring at the novice who has made a new deposit! He wants you to do it immediately A single, and kill you! A novice single, Ping can set the program to bet against you, it knows you are inexperienced.

2. No matter what the situation is, no matter how much capital you have, please do 0.1 lot, and after you gradually increase your capital, then slowly do 0.2, but you still need to control the position not to exceed 10% of the capital. If You only put in $500, and if you do 0.1, you will need about 20% of the gold, so there is no way.

3. You must have your own order mode, you must have enough patience, and you must strictly formulate the conditions for entering orders for yourself. You need your trading system to send an order signal before you start making orders.

4. You must follow the masters. Before you become a veteran, please have a partner who is a single, because you cannot have enough time to understand the background and situation of the market, so you can not be alone when you are a single!

5. Make one order every day. As long as the order is successful that day, you can rest and stop doing it. If you make a mistake, don't do it. If you can't do this, you are destined to make no money.

6. Before making an order, you must enter the stop loss price, you must! You must develop a habit! Do not use the instant transaction method, and then set the stop loss price. The reason is: there will always be situations in the market that you can't think of. Let me say a few million: What if Obama goes to the west after you make an order?! What if the power goes out at your house?! What if the internet at your house is disconnected?! It's just a pig attack?! Maybe you think what I said is not common. I want to tell you, because you don't know what will happen in the world!!!, and the main purpose is to make you develop the habit of placing stop-loss orders before closing, such as washing your hands before meals. Furthermore, the price you set for the first time must be the one you set at the best time, and it is the best stop loss price. This is for the benefit of your funds! If you can't do it, please leave this market early!

7. First of all, don't think about how to make money, you should learn how to do it and how to stay in this market for a period of time. Like adaptation.

8. Try to learn to make orders in time periods of more than 1 hour. You may not be comfortable at first. You always like to make orders in time periods of 1 minute, 5 minutes and 15 minutes. I know you can't change it for a while. Then let me tell you, people who place orders for less than 1 hour will eventually leave the market with hatred, and will eventually be abandoned by the market. In the end, the loss will lead to the loss of everything!