The only way to make consistent profits is to keep your mistakes to a minimum. Keeping the following points in mind will help to help you make steady profits over time and reduce the risks involved in forex.
The first is: trend judgement
The judgement of major trends is quite to be much clearer. Smaller trends, especially intra-day ones, are not as clear-cut, while being influenced by some data expectations and speeches by important people. This is from a technical analysis point of view. We grasp when the trend is a major cycle, when it is a retracement, when it is a range oscillation. The big range is well grasped, the heart has a bottom.
The second is: resolutely do not grab the retracement
The second thing is that you don't want to grab a retracement of a very small intra-day retracement. This is because the technical analysis of this ultra-short-term retracement cannot be more accurate results. It could just be a consolidation, with the long (short) side building up the strength to continue the attack. If you pay attention to your trading records, you will find that the losses on a particular day are often counter-trend trading. Because the direction is right, even if the point can still be changed back. But if the direction is wrong, and do not know the stop loss, it really is hopeless.
The third is: the point is accurate
Often the judgment of the entry point, the exact point of the bottom of the operation into the field I tend to be more aggressive, but also means a greater risk. Because the point first need to judge, and then is the need to wait patiently. (Admittedly, in addition to analysis, there may be some luck in between.) If sometimes the trend is counter-intuitive and does not reach this more advantageous point. Prefer not to enter the market, but choose to hang a single transaction. Because the bad point of entry after trading pressure is often relatively large, especially chasing down or chasing up, often appear headlong on the ceiling.
The fourth is: about stop loss
"To have a stop loss" does not mean that every single order is set up a good system automatic stop loss. Because the foreign exchange plate to go trickier, often a lot of false breakthroughs to sweep away your stop loss. So how do you do it? If you are watching the market, you cannot set, manual stop loss. The gist of a stop loss is that the short-term trend has changed. The trend reversal signal, you can combine the crossing of the average (for example, in the short term, the 5-day line down through the 10-day line) and the K-line signal together to determine.
The fifth is: on the method of making a single
For example, consolidation is easy to cause losses to your short term, but for the medium to long term, you can ignore these intermediate links, as long as the direction is right. It will eventually bring you profits. And pullbacks can cause losses for the medium to long term and require a longer wait. The tape is your short-term hedge, equivalent to a lock single (e.g., the long term is short and your short term is long on a pullback), which can increase profitability.
