Foreign exchange trading how to do a good job of closing positions!

forexbrokerrebateprogram 2023/2/25 3:24:59 4Views

Many people believe that it forex broker rebate program easy to open a position autorebateforex difficult to close it There are many ways to open a position, such as follow cashback forexg the forexbrokerrebateprogram, breakthroughs, channels, etc., but the lack of a systematic approach to closing analysis If it is a loss-making transaction is easy, because the stop-loss point to close the position, but profitable transactions how to maximize profits is more difficult This article discusses several strategies for closing positions and their advantages and disadvantages, no forexrebatebest is perfect, any method are There is no method is perfect, any method have their drawbacks, the understanding of the drawbacks can also better the actual trading system (1) the more used may be the indicator analysis method, for example, when the fast line through the slow line or signal line through the reference value to close positions, etc. Its advantage is that the closing price has a technical basis, more reasonable, more accurate, especially when there is a strong trend can often catch most of the trend, but its disadvantages are also obvious most of the technical indicators are Most of the technical indicators are lagging, so it is unlikely to close positions in time and really maximize profits, and some indicators do not work when the market is consolidating and may even turn a profitable transaction into a loss, so when using this method must have a thorough understanding of the indicators used. If the profit target is 20 or 30 points and the stop loss is 50 or 100 points, it is dangerous. If the stop loss is unreasonably close to the win target, it is likely to hit the stop loss too early and lead to a loss. It is better to have some basis for the number of points of the stop loss rather than a random number, for example, according to historical data statistics, according to the average fluctuation points of the trading session, etc. When reaching the profit target, first close part of the position and move the stop loss to the open position, the remaining position and then close the next target is also a good strategy (3) Close the position with a moving stop is another common method this method is also relatively simple, and will often get more desirable results. However, it is necessary to set the number of trailing points reasonably, not the smaller the number of trailing points, the better, prematurely encountering the stop loss does not maximize profits, but on the contrary, sometimes it may turn a profitable transaction into a loss (4) Some people use the time closing method, such as closing a position at the close of a market, or closing a position before the release of important data, or closing a position after the transaction has been underway for a period of time. The main purpose of this method is to avoid risk, and sometimes even do not even consider the profit and loss of the transaction, so it does not achieve the goal of profit maximization, but can be more effective in controlling risk (5) with the price level to close positions is a method that some professional traders like to use, because this method can better achieve the purpose of profit maximization this method rarely uses technical indicators, in fact, the use of price behavior ( PriceAction), which is to determine the effective support/resistance levels, and then set the profit target at these levels, so it is quite reasonable, but if the support/resistance level is wrongly judged will not achieve the maximum profit target in the judgment can refer to the four-hour chart or the sky chart, because the support/resistance level on the low time chart may not be meaningful in the high time chart, not really reasonable support/resistance level. / resistance levels, so sometimes the transaction in the high time chart is already the highest, lowest level of the weekly chart support / resistance levels last longer, very informative value no matter which closing method is used has its own advantages and disadvantages, the important point is that the closing method must cooperate with the opening method, logically reasonable, do not expect to always trade at the highest or lowest price, because it is completely impossible to do ** The success of ************************************ trading depends largely on the ability to let profits run (that is, how to get out), Tina has studied this issue in depth, scattered in various parts of Tinas book; in the following roughly summarized as: 1. the same position out method combined with the back position out method: for example, the 5-minute momentum system The front exit method combined with the same position exit method: for small-cycle day trading step-by-step reduction strategy; 3 form combined with the position exit method: such as gold Goldman Sachs count system of two exit methods, should also belong to the same position exit method combined with the back exit method; these three strategies belong to the mixed exit method, although not completely do let the profits run, but can maximize the lock profit The most important thing is that it is more operational and can strengthen the traders confidence in trading. The trend screening method, in this regard, Tina provides two strategies: 4. Dow theory guided by the trend discernment with the pyramid position-raising strategy; 5. The following personal experience: I feel that the scarcity characteristics of the trend is stronger than the continuity characteristics, so for small capital traders, the value of using the first three strategies is greater, because of the scarcity of the trend, small capital traders can hardly afford the opportunity cost of trial and error, and the process of waiting for the trend to appear, and the trend falls short The process of waiting for a trend to emerge, as well as the large retracements and profit retractions that occur when a trend falls through, can easily cause a change in a traders mindset; more importantly, small capital traders are not confident in their trading beliefs for various reasons, and coupled with the unpredictability of the market itself, waiting for a long time for a trend to emerge can do more damage to a traders self-confidence and create doubts about the markets ability to provide profit opportunities while trend following trading strategies Confidence building often requires a lot of long-term trading practice and statistical testing to establish, which is very difficult for small capital traders once the traders confidence is shaken, the execution of the system is bound to decline, and even let traders into confusion and use the first three strategies to lock in profits at the right time, and slowly make a big later switch to the last two strategies, from the psychological and effect is the best way, and a The first to start to solve the problem of trend following, may be a blow to their confidence, but the loss is not worth the gain. Therefore, although trend following is the only way to deal with the transaction, but based on the scarcity of the trend, small capital traders need to start from range trading, gradually accumulate funds, that is, small capital traders must wake up to the right way to successful trading, but can not use this right way, but One must first choose the sub-optimal path of interval trading and give up trend following; for interval trading, Tinas see-saw trading method can be of great use!
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