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Nine foreign exchange postures you have to understand

As the world’s largest financial market, foreign exchange trading has become more and more popular among Chinese investors, but due to the long-term influence of Chinese stock thinking, Chinese foreign exchange novices may not be very comfortable with trading in the foreign exchange market when they are new to foreign exchange. , Here MagKing Forex has prepared nine “positions” for foreign exchange novices, are you ready?

1: Foreign exchange trading time period
The foreign exchange market is a 24-hour non-stop market. The most obvious difference from other trading markets is the continuity in time and the unconstrained nature of space. Taking Beijing time as the standard, every morning, starting from Wellington in New Zealand until the closing of the US West Coast market in the early morning, the major markets in Australia, Asia, and North America are connected end to end. At any time of the business day, traders can Find a suitable foreign exchange market for trading, but it does not mean that we can trade. We have to trade in the foreign exchange market 24 hours a day. Each trading period in the foreign exchange market has its own laws and characteristics, so we only need to understand his laws Adopting the corresponding strategy in the appropriate time period can greatly increase the success rate of the transaction while avoiding transaction risks.

Asian market: the time is 5 o’clock -14 o’clock Beijing time

European morning market: the time is 14-18 o’clock Beijing time

The European lunch break and the beginning of the US market: the time is 18-20 o’clock Beijing time

The afternoon session of the European city and the morning session of the US city alternate: the time is 20 o’clock – 24 o’clock Beijing time

2: Do not hold positions overnight
For novices, holding a position overnight is a torment, and even a good night’s sleep is not good. Especially for short-term trading, it is not necessary to hold positions overnight, let alone hold positions over the weekend, to prevent important news releases or important data announcements during the weekend. During the weekend, the market fluctuates strongly overnight, and a large gap may occur.

Generally, only when the market situation is relatively clear and the good news is optimistic, you can choose to hold the light position overnight, and at the same time, there is a certain profit margin to hold the position overnight to better resist risks.

3: Set stop loss and profit
Whether it is a novice in or out of the foreign exchange market, or a veteran for many years, they will often set stop loss and take profit, especially novices, must strictly implement the stop loss and take profit setting.

Any investment must be risk-conscious. Every industry has people who lose money and some people make money. In this high-risk industry, people who have never lost money do not exist. Everyone who can survive in this market , You should first learn how to control risks, in other words, how to control losses, and at the same time you have to restrain your desire and greed, and you should resolutely execute after setting the stop-profit and stop-loss price.

4: Don’t trust your instincts too much
Many novices do not have professional knowledge of foreign exchange, and do not pay attention to international current affairs. They do not understand the meaning of K-line. They only rely on their own intuition or follow suit. This is actually a very dangerous behavior. MagKing Forex recommends that you read more international news, not what others say, but what is happening in the market.

5: Light warehouse is king
Foreign exchange is a leveraged transaction, so don’t simply fill your position at any time. Position determines your mentality, mentality determines behavior, and behavior leads to results. Weak position can keep your losses and profits within the acceptable range, and will not make your emotions fluctuate too much. On the contrary, heavy position will increase your stress, disrupt trading ideas, and easily make wrong judgments.

6: Follow the market trend
Foreign exchange transactions need to follow the market trend, and don’t try to compete with the foreign exchange trend. Following the focus of the foreign exchange market is the way to long-term success. It’s just that there is often a lack of clear trends in the market. At this time, many indicators need to be used to assist the judgment, such as the RS Relative Strength Index, KDJ, MACD indicator, etc. The use and judgment of these indicators are in the program of MagKing Forex and CCTV Securities Information Channel cooperation. “MagKing Forex Union Standard Observation” has in-depth discussion.

7: T+0 mechanism
Foreign exchange trading is different from stocks. It is a T+0 mechanism that can be bought and sold immediately. Therefore, it is necessary to give full play to the mobility of this mechanism, grasp the opportunity, master the rhythm of entering and exiting, and overcoming greed and fear.

8: Essential foreign exchange investment knowledge
Any practice requires theoretical knowledge as the basis, and foreign exchange transactions are the same. Traders must practice their basic skills before entering the foreign exchange market, instead of entering the market with the mentality of “getting rich overnight”.

9: Simulation first, then firm offer
For novices, there is no idea to start real trading directly at the beginning. It is recommended to apply for a demo account for free and trade with the demo disk first, while summarizing the simulation experience, recording the daily gains and losses, and forming good trading habits. Once you have your own trading ideas, and then perform firm operations, I believe there will be different gains.

MagKing Forex reminds everyone that financial derivatives carry financial risks with their own attributes. Before joining the foreign exchange market, you must strictly do your own training and education, and strictly control capital risk, so as to be more comfortable in the foreign exchange market.

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