How do foreign exchange trading experts make up their positions?
Replenishment is a passive response strategy after being locked up. It is not a good way to unfasten itself, but in some specific cases it is the most appropriate method. So, how do foreign exchange trading experts make up their positions?
1. The bear market cannot replenish its position at the beginning of the bear market.
People who speculate on foreign exchange understand this principle, but some small can not distinguish between bull and bear turning point how to do?
There is a very simple way: the exchange rate has fallen so much that it will not make up for its position. If the current price of foreign exchange is 5% lower than the purchase price, there is no need to fill the position, because any intraday shock may be unfastened. If the current price is 20% lower than the purchase price by more than 30%, and even when the exchange rate is halved, you can consider filling the position, and the room for further decline in the future market is already relatively limited.
2. If the market is not stable, it shall not be filled.
The market is in the decline channel or relay rebound can not fill positions, because the currency index further fall will drag on most stocks to go downhill together, with the exception of a very small number of foreign exchange that is stronger against the market.
The best time for a good trader to fill his position is when the index is relatively low or has just reversed upward. At this time, the potential to rise is huge, the possibility of falling is the smallest, and it is safer to replenish positions.
3. Weak foreign exchange is not replenished
Especially those who rose in the market it did not rise, the market fell it followed by the decline in foreign exchange. The purpose of replenishing the position is to make up for the loss of the previous foreign exchange with the profit of the later foreign exchange replenishment, since there is no need to restrict oneself to make up for the original trapped variety.
What kind of replenishment is not the key, the key is to make the biggest profit, this is the focus of consideration. Therefore, to make up for positions to make up for strong foreign exchange, can not make up for weak foreign exchange.
4, the super black horse that soared in the early stage did not make up for it.
History used to have many leading leaders, after a brief dazzling light, from then on into the darkness of a long night. Such foreign exchange will only make up for it, and deeper, it will eventually get stuck in the quagmire.
5. seize the opportunity to replenish your position and strive for a success
We must not replenish positions step by step and replenish them step by step. First of all, ordinary investors have limited funds and cannot afford multiple leveling operations.
Second, the replenishment is to make up the previous mis-buying behavior, it should not be the second wrong transaction itself. The so-called step-by-level position is to defend the act of the purchase of the act, many times, the result of buying more and the out-of-the-the-the-box result will surely fall into the situation.
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