A good grasp of the right to buy only half the battle, with the right positions is complete success. This is no speculative market everlasting rule, the foreign exchange market is no exception.
Some people with friends in the foreign exchange analysis very set, regardless of fundamentals, technicals have their own insights, but they are often unsatisfactory operating performance. One reason is the timing of closing almost always wrong, either prematurely open, did not achieve the subsequent huge profits; or that the delay in the open, so that the final market buy point back to the starting point, even stuck. Visible, a good grasp of timing is very important to open basic skills.
"High throw Law" and "sub-top positions Law"
Investors are hoping to have a method, a panacea, such as a technical analysis indicators, once index reaches a certain value, you can accurately positions. Unfortunately, however, so far no such technical indicators. In fact, if not overly pursuit of accurate, method of course there is. This issue introduces "high throw Law" and "sub-top positions Law" can do correct positions, but not the exact positions.
The so-called "high throw Act" refers to the investors to buy the currency at the time, we have given this money will be a good a profit target price. Once the exchange rate to achieve this goal, investors liquidated. In general, the use of this investment strategy investors use currency mostly combine fundamental and technical analysis, such as the golden line, the average line, shape, etc. to determine a reasonable target price, then wait for money to reach this a target price immediately liquidated.
"Sub-top positions Law" is not determined in advance to give yourself a target price, but has been the position until the second time to see if the exchange rate show signs of peaking throws. In general, investors are using this open strategy is commonly used in technical analysis to determine signs of peaking, mainly from the patterns and trends to determine the exchange rate movements. Specifically, through the double top, head and shoulders, triple top judge established mid-head, decisive positions.
The combined effect of the two laws better
Whether it is "high throw Law" or "sub-top positions Law", you can get very good investment results. Many of the world successful investors and fund managers are using one of the methods. But no matter which method is adopted, all had their own shortcomings. For the use of "high throw Law" investors, they must first master a set of national currencies where the economic fundamentals of the analysis method, the target level set by the investor will certainly be higher than its current market price. So, unless you really have its own unique in the foreign exchange market, otherwise the establishment of the target price could be more dangerous.
As for the use of investors' views of the top positions Law ", it is mainly based on the exchange rate movements to determine, not in advance to give ourselves a target price. Of course, shortcomings are obvious, which requires investors to have to invest more time and energy draining. This is why some people tirelessly studying what is "really top" and what is "off the top", so as not to be fooled.
We believe that the combination of the two methods would be better to use some of this more rational positions.When the exchange rate reaches the target price of buying at the beginning of the set, it should be liquidated immediately.Because investors in the fixed target price, always have their own reasons, and start setting the target level, generally but also more rational. When the exchange rate rising, most people's mind began to heat. To avoid mistakes, better and timely closing. Investors may open after the dollar will rise, which can only say that investor misjudgment, rather than as investors hotheaded sake. If prices continue to rise there really should have the courage to buy again, but this is yet a new action, re-set the target position rationally, rather than a list of affected before.
