Baokun Finance: How to Control Foreign Exchange Trading Positions

Whether it's a real offerforeign exchangeBuying and selling are still margin trading with leverage, and foreign exchange investors tend to prefer to judge the market situation or be highly aware of the profit and loss situation of their accounts, while ignoring itForeign exchange transactionsA more important element is position change, also known as position adjustment. At the same time, various changes in current events and various technical analyses have caused many traders to hover around the ambiguous "middle ground" of "analytical logic", making it difficult to focus on certain truly important factors. Therefore, I am happy to share some of my views in writing.

Due to the fact that a qualified trading system should at least be an "emergency response system", and the so-called "emergency response" based on exchange rate trends is to make a certain expected value adjustment to the current position in accordance with the rules. Therefore, the change in position during a complete trading cycle is of equal importance to trend capture. After using various technical analysis techniques or empirical intuition to judge the trend of exchange rates, the proportion of funds occupied by opening positions is not a fixed value. This discovery or consciousness is definitely not a profound theoretical question. In fact, experienced traders should have this feeling to some extent. Habitual heavy positions and habitual light positions are not advisable, at least not moving towards the direction of optimal positions. The change in position brought about by position adjustment is a prerequisite for moving towards stable profitability.

The future is unknowable, so combining the knownkThe line trend and the proportion of positions are only an expectation for the future. After communicating with some people online, I have found that many traders often close all their current positions after discovering the wrong direction of their positions or due to the price reaching the "set" stop loss level. Similarly, when making profits, it is common to flatten all current positions once the expected trend has turned or the "set" stop win position has been reached. This is obviously unreasonable, and the reason is actually very simple: a "one-time" position change is definitely not a suboptimal solution for position adjustment(The optimal is unattainable)。

Since a "one-time" position adjustment cannot match the future difficult to figure out the clear exchange rate trend, the value of allowing position changes is worth calmly considering. Here are only some principled views. In considering the trend of stop loss exchange rates, as the exchange rate may break through the stop loss and then move in the opposite direction, it is possible to close a portion of the position. The proportion can be chosen appropriately, but it must be large enough to reflect certain future expectations. If the exchange rate continues to move against the position, it will gradually usher in the final stop loss or move down the position price according to expectations. The stabilization of the exchange rate from the stop loss position allows for the continued exit of some positions, while the remaining positions can be appropriately moved down to the stop loss position. At the same time, after the exchange rate changes towards profitability, positions can be reduced or even exited with profits. The analysis of the exchange rate trend considering stop win and so on, will not be elaborated further.

The change in position must reflect the trader's expectations for future trends, and the current expected value is always a probability of an event occurring. Position adjustment can greatly alleviate the arbitrariness of personal experience or technical analysis on future trends, and the ultimate effect is that changes in positions resonate with changes in exchange rates. Because in addition to margin ratios and trend trends, position changes themselves are also a flexible leverage.

The content of this article is provided by Baokun Finance:www.bkcj168.com Organized.