Margin speculation in foreign exchange how to control the position

skills, foreign exchange margin trading, generally 1:100, 1:200 amplification of the transaction, so that you can make a small boom last year, the foreign exchange market volatility, creating a lot of opportunities to make money, but also everywhere forex broker rebate program the opportunity to burst the position I said to a friend who just opened a foreign exchange account, burst the position is as common as eating based on my lessons learned from many burst positions, summarized the following three direct causes of burst positions 1, the direction of the reverse 2, did forexbrokerrebateprogram set a stop autorebateforex 3, the position is heavy. The three forexrebatebest are often combined to occur in a range in the direction of the reverse, even if the position is light, it is difficult to control their trading emotions to do range fluctuations habitual people, the more against the more positions, which will often be substantially profitable again back but once the range is broken, the blowout is bound to do foreign exchange trading, who can not be 100% directionally correct, especially to do small and medium swing, cashback forex0 points to 200 points between so set a stop loss is to prevent the burst of the security There is also a situation, set a stop loss will also lose a lot of money, is a heavy position such as you have 1000 U.S. dollars to do a lot of transactions, fluctuations is 10 U.S. dollars, set a stop loss of 50 points, hit the stop loss on the loss of 500 U.S. dollars, losses in general so that the big gains and losses of the transaction is also bound to the road to burst My own summary of an appropriate Position ratio for your reference account capital of $ 500, the smallest trading unit 0.01, leverage 1: 200. According to Jahn 21 trading discipline, each transaction can not lose 10% of the total principal as the standard, the following settings 1, $ 500 to do 0.1 lot of transactions, and so on 50 dollars to do the proportion of 0.01 lot 2, the important opportunity to trade when the single stop loss is 50 points Why is 50 points it? So that $ 500 to do 0.1 hand, 50 points stop loss loss of $ 50 so that the loss of funds does not exceed 10% of the total principal!　　This 50 points is an empirical value, if you want to set a 100-point stop loss, the position will have to be reduced by half, $ 500 can only do 0.05 lots, so if the stop loss out, the amount of loss is also $ 50 This is the spirit of each loss can not exceed the proportion of the total principal 10% understand this principle, you can flexibly adjust the position 3, in the event of a trading loss, the future trading position to be adjusted downward Take Article 2 for example, the original 500 if a continuous loss to 450, then the number of repositioned lots should become 0.09, so that the original 50-point stop loss of 50 U.S. dollars, now it becomes a loss of 45 U.S. dollars, or not more than each loss does not exceed the principle of 10% of the total principal 4, the same, if the profit, the increase in capital, the position can be expanded, for example, now earn 300 U.S. dollars, there are 800 U.S. dollars, then the maximum position is 800/50 = 16, that is, 16 0.01 hands is 0.16 hands, because it is the proportion of 50 U.S. dollars to place an order 0.01, 800 U.S. dollars is 16 50 U.S. dollars so derived from this result 5, if you think that each loss of 10% more, want to lose no more than 5% of the total principal each time, then in the case of unchanged stop-loss points, we must adjust the position, the The position is adjusted to 100 U.S. dollars to do 0.01 hands of proportional skills,1 2 Next The above is to protect the overall principal perspective of how to arrange positions that this 50-point stop loss is a certain, not stop-loss point is usually set in three ways 1, the overall capital security protection method is the method described above 2, the technical level of stop-loss method in the technical level of stop-loss method, it encountered a new But the calculation is the same as the method above, such as 1.4500 breakthrough for more pounds, after the breakthrough to 1.4430 broken, representing a false breakthrough, and the buy point is the breakthrough point above 20 points (in order to avoid false breakthrough), is 1.4520 points, so 1.1520-1.4430 = 90 points of the ratio, plus the two-way 8 points of difference, is 98 points so In order to control the loss does not exceed 10% of the total principal, you can not $ 500 to do 0.1 hands, but $ 500 to do 0.05 hands how to calculate the above 5 points in the example 3, the combination of the first two methods of application here to say a principle is that the above two methods stop loss points are not the same time, if the technical points greater than the permanent 50 points according to the technical points stop loss and adjust the position as 2 examples are such a situation When the technical points is less than the permanent 50 points stop-loss criteria, according to the technical points set up such as buy points from the technical break only 25 points so that if you want to play the advantages of leverage can be $ 500 to do 0.2 lots of transactions, because of this loss 25 points stop loss out, a total loss of $ 50, the same did not exceed the principle of each loss does not exceed 10% of the total principal The above-mentioned examples are calculated according to the maximum position as for the choice of The loss ratio is not more than 10% of the total principal or 5% or other, according to their own risk aversion, but the upper limit is best not to exceed 10% of the ratio and the proportion of this position said earlier, is found when the market important opportunities, generally 200 points to 500 points of opportunity, if you like to do short term small fluctuations in the position to be even smaller, I suggest the above position ratio of 1 in 3. Because the stop interval is small, so the stop-loss point settings should also be adjusted appropriately small Then the above-mentioned important opportunities generally how much time to occur once, in my personal experience is that the 200-point swing opportunities a day on 2, 3 times, so do not exceed 3 such transactions per day, if you catch bad luck, 3 consecutive losses is a loss of 30% of the principal ah and 500-point swing opportunities, a week can have a 2, 3 times on So to reduce the transaction especially the largest position trading ratio of the transaction (the above are calculated by the largest trading proportion of positions) Finally, another suggestion, is to make money to a certain percentage to take out because the burst position is as normal as eating, the uncertainty of this market is too much to the money in hand is their own ah Previous 1 2