As the world’s largest financial market, foreign exchange transactions are becoming more and more popular among Chinese investors. However, due to the long-term influence of Chinese stock thinking, Chinese foreign exchange novices may not be very comfortable with foreign exchange when they are new to foreign exchange. For market transactions, here MagKing has prepared nine “positions” for foreign exchange novices. Are you ready?
1: Forex 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, 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. Traders can do so at any time of the business day. 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 5:00-14:00 Beijing time
Europe morning market: time is 14-18 o’clock Beijing time
The lunch break in the European market and the start of the US market: the time is 18-20 o’clock Beijing time
The afternoon trading in Europe and the morning trading in the United States alternate: the time is 20 o’clock – 24 o’clock Beijing time
2: Don’t hold positions overnight
For a novice, holding a position overnight is a torment, and even a good night’s sleep is not good enough. 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 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 space to hold the position overnight to better resist risks.
3: Set stop loss and take profit
No matter whether you are a novice in or out of the foreign exchange market, or a veteran who has been around for many years, you will often set stop loss and profit, especially for novices, you must strictly implement the stop loss and profit setting.
Any investment must be risk-conscious. There are people in every industry who lose money and some people make money. In this high-risk industry, people who have never lost money do not exist. Everyone in this market can Anyone who survives should first learn how to control risks, in other words, how to control losses. At the same time, you must 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 foreign exchange knowledge, 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 recommends that everyone 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 attitude, attitude 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. 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 indicators, etc. The use and judgment of these indicators are in the program of the cooperation between MagKing and CCTV Securities Information Channel. They are discussed in depth in the MagKing Joint Observation.
7: T+0 mechanism
Forex trading is different from stocks. It is a T+0 mechanism, which can be bought and sold immediately. Therefore, we must give full play to the flexibility of this mechanism, grasp the opportunity, master the rhythm of entry and exit, and overcome greed and fear.
8: Essential foreign exchange investment knowledge
Any practice requires theoretical knowledge as the basis, and foreign exchange trading is 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” transaction.
9: Simulate first, then real deal
For novices, there is no idea to directly start real trading 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 developing a good one If you are used to trading and have your own trading ideas, and then perform a firm operation, I believe there will be different gains.
MagKing ForexFMK reminds everyone that financial derivatives have their own financial risks. Before joining the foreign exchange market, they must strictly do their own training and education, and strictly control capital risk, so as to be more comfortable in the foreign exchange market.