Foreign exchange trading capital management and risk control


A, forex trad forextradingbrokerwebsiteg stop cashback forex method stop loss forex trading site one of the important means of capital management forextradingwebsiteonline risk control any position needs to have its stop loss point thought investors in trading some mistakes is a very normal thing but if it is a mistake and not to solve it, it will become a big mistake to what we often say, trading is not afraid of the wrong afraid to drag The following describes Stop loss of several common methods:  1, fixed stop loss This is a simple and practical method, it refers to the loss is set to a fixed percentage, once the loss is greater than the proportion of the position closed in time fixed stop loss investors do not need to rely excessively on the judgment of the market stop loss proportion of the setting is the key, my experience is generally controlled within 3% to 10% 2, technical stop loss The method of stop-loss settings and technology combined with the elimination of market volatility, to set a good stop loss at key technical levels to avoid losses of the near expansion once the price is found to be broken, the resolute stop loss, mainly the following methods  (1) trend stop-loss method includes the price effectively fell through the bottom of the last trend, the price effectively fell below the average system, the price effectively fell below the tangent line of the trend line, the price effectively fell below the lower rail of the ascending channel, etc.  (2) form stop-loss method includes the price fell below the head and shoulders, double type, V-shaped pattern of the strong line parts, the price of a jump breakthrough gap, etc.  (3) K-line stop-loss method includes two yin and one yang, twilight star, through the head broken foot and other stop-loss level settings to pay attention to several hair factors: 1, to look at the general trend in the technical graphics Look for the previous major gaps or hit a new high or new bottom, or the market has repeatedly confirmed that it is difficult to break through the price level 2, technical analysis on the main analysis of the level of technical indicators usually used by professional traders, these levels also need to pay attention to 3, the government and officials often stressed the price level 4, the most important point is that, from the daily operation of the summary of experience to find the right stop-loss method  Foreign exchange trading capital management and risk control settings capital management and risk to solve the problem of how to protect the safety of funds, how to reduce the impact of unfavorable trading results on the funds brought about by the problem of risk control methods, the most commonly used is through the control of a single transaction loss ratio of risk percentage model percentage model is through the control of a fixed percentage of total funds as a single than the maximum allowable trading For example, if the risk control ratio is 3% and the total amount of capital is $10,000, then the maximum loss allowed for a single transaction is 1000 X 3% = 300 If a loss is incurred, then 3% of the remaining funds will be used as the maximum loss allowed for the next transaction is (1000-30) X 3% = 291 and so on in Determine the amount of loss allowed for a single transaction can be based on the stop loss range to calculate the size of the position this is an inverse equivalence harness strategy risk control model, the position will grow with the growth of funds, and vice versa with the reduction of funds and reduce, but the risk is the same this for the control of losses and profit growth is a good program that can maximize the speed of losses and profits in a safe We all know that if the capital loss of 10%, only 10% of the remaining funds profit can be a deficit of the original capital scale, the capital loss of 20% will require the remaining funds to win 25% to lose the original capital scale, if the loss of 50% will require the remaining funds to win 100% to restore the original capital scale the greater the magnitude of the loss, the more difficult it is to restore The greater the magnitude of the loss, the more difficult it is to recover the initial capital size, so you must avoid deep losses of capital As for the maximum amount of money back to the fold, according to everyones tolerance for risk to determine my personal recommendation is 30% is the upper limit If the maximum number of consecutive losses in the transaction is 10 times, then the amount of each loss should be limited to 30% / 10 = 3% Assuming that the maximum number of consecutive losses in the transaction is 6 times, then the amount of each loss should be limited to 30% / 10 = 3% Assuming that the maximum number of consecutive losses in the transaction The number of times is 6, then the amount of each loss is 30% / 6 = 5% above is a set of measured capital management and risk control ideas for reference Foreign exchange margin trading zero risk control method foreign exchange margin trading in most peoples minds, is a high-risk high-yield investment, in fact, otherwise, the risk of foreign exchange margin trading can be controlled, in the control of risk At the same time can ensure higher returns; most investors, under the temptation of high profits, without careful consideration and study of risk control, will hope on windfall profits (2, 3 times a year), to less than one in 10,000 successful windfall traders as an example, the result is to cause the vast majority of traders significant losses or even burst positions in the field of investment, risk control is one of the most important aspects, whether it is the investment guru or In the field of investment, risk control is one of the most important aspects, whether it is the investment guru or the average trader, will be regarded as the first priority, the first is how to preserve the capital (i.e., zero risk) not to lose money, in this regard, the investment guru George Soros and Warren B. S. In this regard, the investment gurus George Soros and Warren Buffett paid special attention to the importance of the investment process. Baffert special attention, for investors to make an example; Soros once said, survival is to preserve the principal, an investment loss, no matter how much loss is a step back to the bottom line of life, is a threat to survival Baffert the same, his a widely circulated quote: investment law one, try to avoid risk, preserve the principal; second, try to avoid risk, preserve the principal; third, firmly bear in mind the first and The second for foreign exchange margin trading, preserve the principal, control the risk, especially important, because it is characterized by the ability to enlarge the principal 100 ~ 400 times, which of course creates higher profits for the transaction, while increasing the risk of greater problems is the key to control in the hands of traders, how to control will be the key to the success or failure of the investment, but also the key to preserve the principal, is necessary to seriously study, to achieve zero in the transaction The risk of the minimum preservation of principal, specifically through fundamental analysis, operational method control, capital management and technical analysis of the integrated use of  a, trading species selection 1, buy and sell a comprehensive analysis of the currency fundamentals buy the basic factors influencing the strength of the currency still exists, and in the longer term (at least a year) will still be the basic factors supporting the currency The basic factors of strength, the reasons for the weakness of the selling currency and the future economic changes in the currency will continue to weaken the currency such as several factors affecting the weakness of the yen will not change in the short term, mainly the following aspects: on the one hand, the governments huge fiscal deficit, on the other hand, traditional industries exports are still the main driver of Japans economic growth, subject to the exchange rate, and competitiveness has become increasingly blunt, etc. 2, discriminate The long-term cycle of the currency (about 3-7 years) and short-term cycle (about 1 year or so) law, in line with the long-term cycle for the long term, the use of short-term cycle for the short term 2, the use of technical analysis methods to control 1, follow the trend: exchange rate changes (especially the straight plate, such as the U.S. dollar against the British pound, etc.), the cycle changes are obvious, the large cycle changes ranging from 3 to 7 years, or even longer; small cycle (including adjustment cycle) generally also has 5 months to 1 year ranging, and relatively very stable forex trading, should do with the cycle trend-based, try not to trade back and forth between the two sides 2, fluctuations, length of time and fast and slow analysis: the magnitude of exchange rate changes are generally about 10% per year, the large cycle changes are larger, because of the long time, can reach 50%-100% More than, small cycle amplitude generally in about 1000-2000 points amplitude analysis is conducive to the overall layout of the transaction careful analysis of the exchange rate fluctuations back and forth and the length of the adjustment time, to provide guidance for short-term operations; single when the side of the rise and fall fluctuation time and back and forth to adjust the ratio of fluctuation time is an important factor in the transaction, is the control of risk is a vital part of the general four major currencies (the dollar against the euro, the British pound, the yen, the Swiss franc) The exchange rate fluctuates frequently back and forth, providing a lot of opportunities for short-term operations Three, capital management, trading methods and profit levels 1, capital management is the core of zero risk control, in order to control risk and achieve the goal of capital preservation trading, capital management in three stages: the first stage, investment Initial, about a month or so, capital control is the strictest period, general trading capital control at about 1%; the second stage, investment in the middle, about 1 to 2 months; there is a certain amount of profit and greater than offset the expected increase in the amount of single possible loss, at this time, capital control at 1% to 3%; the third stage of accelerated profitability stage, when the profit is larger, increasing the amount of single is not a problem, capital control can be relaxed to 3% ~ 5% In addition, special attention needs to be paid to the location of the exchange rate and risk factors are also another important factor in controlling the amount of capital 2, trading methods are the means to achieve zero risk control, trading methods to determine the characteristics of the exchange rate changes are as follows: follow the trend, the combination of long and short comply with the trend needs to determine is to follow the large and small trend operation of the combination of long and short need to be determined according to the trend of the currency, large unilateral The trend is mainly long, generally based on the short term 3, profit level mainly depends on the investors analytical ability as well as operating methods Soros in the early years of foreign exchange trading mainly in the real world, can still reach more than 20% profit per year In general, as a certain foreign exchange margin trading experience investors, if you can operate according to the appropriate method, the annual profit level of more than 30% is relatively easy The profit level of more than 30% per year is relatively easy to reach more than 100% is not too difficult A, position management Position management is very important in the field of financial investment, a use of funds and not too much, not too little, use too much if there is a loss and the loss is too big, use too little may waste a great opportunity, in a word is to stay green hills in fear of no firewood, personal single style is more The amount of money used at one time is less than the current amount of money corresponding to the number of lots of 1/10 hand plus 1 hand, that is to say, within 10,000 U.S. dollars at most once under a hand, 10,000 U.S. dollars ~ 20,000 U.S. dollars at most once under the second-hand, and so on Second, strict stop-loss in order to effectively control the risk, not to a single due to losses and may be set for a long time, at the time of each single must be set at the same time stop-loss, whether Short-term, medium-term, long-term, so as to be able to effectively control the risk on the basis of thus gaining Third, the best trading time to enter the foreign exchange, gold field of the best trading time is roughly the same, in the afternoon 3:00 ~ 6:00 is the opening of the morning session of the European plate, the market began to have big fluctuations, 8:00 pm to 12:00 pm is the opening of the afternoon session of the European plate, the opening of the morning session of the American plate The market began to fluctuate sharply, so in the morning and noon this time, the market fluctuations are small, may see the rising trend all of a sudden in the European disk opening accompanied by large trading volume fell sharply, so in order to be strictly cautious during the best trading time must be entered Fourth, a trading day loss once is not allowed to do a second single If the first single loss in a trading day, and then have the experience and technology The analysts will not avoid the bad psychology of turning over the capital, etc. If you continue to try to place a second order, it is inevitable that you will continue to lose money because of your mindset, so in order to be cautious during the day after the first loss should adjust your mindset, take a short break and look forward to operating again in the future  five, before the promulgation of important data not to enter or close the position before the promulgation of the news, the general market will be in a stable state of adjustment. Because most short term investors will be happy to be loyal to copy data, and the data can only be known after the promulgation of the data, so if the short term operation in order to be prudent should be closed before the promulgation of important data to understand or wait until after the promulgation of the data and then cautiously enter Six, do not hang single transaction so-called hanging single transaction refers to when the operation of the commodity price has not reached the specified level and the investor is expected to reach the specified level For example: the pound now exchange rate of 1.9000, investors in 1.9050 when hanging a single for short, this time if the exchange rate can really reach 1.9050 when hanging a single to take effect now many investors and even traders are using hanging a single transaction, but I think hanging a single transaction is very dangerous, for example, if the pound from 1.9000 to 1.9050 to a The above example, if the pound from 1.9000 to 1.9050 to a large positive line to raise above, if the hanging single transaction, then the consequences will be unimaginable, the above example, in fact, many hanging single traders thinking is that the pound is already very high can not go up, but this speculation is based on assumptions, who do not know how in the end will go, and hanging single transaction, then completely can be replaced by real-time trading, that is, if the pound can really go up to 1.9050 and then start If the fall, then it is not too late to fall in the single, why risk hanging single?  Seven, do not set a stop-win so-called stop-win is when the operation of the commodity price reached the investor expected to set a profit target and profit automatically close the position, why do not need a stop-win, the reason and do not need to hang a single is similar, because the commodity price may be far better than expected development, and analysis on the complete technical can determine the maximum profit level Eight, to increase positions in order to control the risk based on The maximum profit is generally in the market when it is obvious and on the basis of profit can be increased, increase positions shall be in line with the law of the pyramid Nine, lose small money to earn big money in the financial market to be able to make money the mechanism are similar, that is, when making a single must make full profit, and in the loss of money to lose small money to admit defeat out of the field Ten, medium and long term to short term profit for the beginning of the general in The financial market can be divided into short term, medium term, long term, three ways can be used flexibly, but in doing the medium and long term, I personally believe that should not be a big stop loss at the expense of the short term profits for a good start and then further put the long line to catch big fish Eleven, do more wrong more that means do not do single frequently, because each single is carefully planned, are a The general daily with the best energy maximum confidence to do a single on it, frequent combat is likely to lead to a decline in attention, relaxed thinking further lead to losses Twelve, keep healthy operation of foreign exchange and gold market is a very good energy and health work, if the energy and health aspects of a slight discomfort will likely lead to unexpected losses, so usually pay attention to exercise Keep a good mood