Introduction to Forex Investing: How to Develop a Short-Term Trading Strategy?

　　How to make money in the foreign exchange market?First of all,customize a set of trading strategies of your own,and short-term trading is the most common and most accustomed trading method for beginners.There are many things in the short-term operation of foreign exchange speculation that investors need to pay attention to.So,how to conduct short-term operations in foreign exchange speculation?

　　The first point:only consider the real-time market

　　Only consider the real-time market,learn to capture the small bands,and don’t have to worry about how the market will go the next day.Learn to take advantage of the market,be safe in the pocket,and flee when there is no advantage,avoid danger,and prevent unexpected events from causing transactions Passive,to ensure the flexible operation of funds in foreign exchange speculation.

　　The second point:be good at grasping trading opportunities

　　Good at grasping trading opportunities,sometimes the volatility of the foreign exchange market may be very narrow in one day,but the bands are very rich,that is,it fluctuates several times,which is an inconspicuous market that is free from trading for long-term traders;but for short-term traders For foreign exchange speculators,it has added several trading opportunities and can gain something.In this way,the market that long-term foreign exchange speculators dismissed becomes meaningful,and it has evolved from one opportunity to several opportunities.

　　Point 3:Win by Quantity

　　The profit that can be earned by speculating in foreign exchange is limited each time in the short-term.Foreign exchange investors should learn to pay attention to the accumulated profit.The chance of continuous unilateral big market is rare once or twice within a year,and it is possible to change the market from the beginning to the beginning.If you earn all the money,it is even more rare;and there are many small markets that repeatedly fluctuate from ten to ten points within a day.It is not too difficult to seek small profits without being greedy or impetuous.

　　Point 4:Forget the past

　　Forget the past and treat each entry like a new trade.Short-term speculation in foreign exchange should be settled on the same day,success is success,failure is failure,don’t think about how much you have lost this time and how much you have to make back next time,every time you must carefully analyze the market,and set profit goals according to the current market.and trading plan.

　　The above are the four major precautions for short-term trading,so how to combine them to customize a foreign exchange strategy?

　　1.Operation direction

　　First,consider the direction of the short,medium and long-term trends of the market,and decide which type of operation you want to carry out,so as to carry out the layout of the operation.The direction of the long-term operation is the"potential"first,follow the direction of the market,do not subjectively preset the top and bottom.The operation of the middle line is heavier on"volume",that is,the performance of the volume and price in the market.In the medium-term trend,the relationship between volume and price reveals a very important signal,and the technical trend analysis is used as a reference for operation..In terms of short-term operations,the focus is on"breaking",such as a breakthrough after a long-term market,seeking the best entry point purely from a technical point of view,and using short-term technical analysis as the basis for entry and exit.

　　2.Financial planning:

　　After deciding the direction of the operation,the overall financial planning must be made.First of all,decide how big the position you want to operate.Usually,the investment capital is used as a reference.Long-term positions can be invested with a higher proportion of funds,and short-term positions should preferably not exceed one-third of the total investment.In terms of capital control,it is best not to bet everything.If all the funds are lost when the market is wrong,there will be no funds for subsequent operations.In addition,when setting the strategy,the profit-loss ratio after the operation must be calculated first.Usually,3:1 is more in line with the principle of speculation.If the profit-loss ratio of 3:1 is maintained every time you enter the market,you will make a profit every time you make money from a transaction.50%of the total value is added to the next transaction as the transaction amount.When there is a loss,the next transaction amount is deducted from the loss amount.Even if the winning rate is only one-half,the probability of losing five times in the market is 0.1875.From a long-term perspective It seems that the chance of losing money is close to zero.Therefore,good capital planning almost determines the good or bad of the operation strategy,and it must not be underestimated.

　　3.Offense and defense must have a plan

　　The formulation of the strategy is the first defense,and only with a solid defense plan can we attack the outside world,just like the war between the two armies.If there is no strong backing or flexible retreat,the odds of winning are certainly not high.On the contrary,it is easy to be a last-ditch,desperate gamble.

　　At the beginning of trading,you are often faced with the embarrassment of the market rushing up and down,sometimes making a profit and sometimes losing.If you don’t reach the bottom line of defense,don’t rush forward,you must have patience and self-discipline,and avoid the success or failure of the operation due to the ups and downs of emotions.When the trading strategy is formulated,the offensive strategy must also be formulated.When will you increase the stake?How much to add?Offensive plans can increase profits,but may also lead to larger losses.Don't make overweight moves when you lose.

　　From the point of view of business,when you buy a batch of goods but can't sell them,and the market price keeps falling,will you buy more?The same is true of the concept of overweight.When the market operation is in a state of loss,it is like the purchase of unsalable goods.You can only find a way to deal with the loss,and how to have the spare capacity to overweight again.

　　Therefore,a perfect offensive and defensive plan can understand the maximum loss of each transaction before entering the trade,and within the range that can be tolerated,it can be calm in the face of short-term market fluctuations.For more foreign exchange trading knowledge and investment treasures,please continue to lock the mutual market network.