Affect our profit from foreign currency investments Factors


Who profits from the foreign exchange impact on our investment? We think there are five stumbling block will eat our principal and profit in the transaction. On the road leading to profitable investment, we will face five stumbling block, this five stumbling block in different aspects of our foreign investment, no one could eat our profits or even the principal. To reach the goal of profitable investment, we have all these five stumbling block knocked to the ground.
This five stumbling block are:
The first one: the foreign exchange market itself
This is the vast majority of investors to deal with most of the time a stumbling block, but it is the least important one.Because the value of the foreign exchange market for investors, only that it provides investment opportunities. The foreign exchange market itself, is not going to be anyone accurately predict. Investors will spend most of the time and effort to predict the future trend of the market is wrong, worth the candle. To deal with the foreign exchange market, investors only need to have some basic rules, the basic trend of the market and then track it.
Second only: investors themselves
This is most investors ignored a stumbling block, and it is the most important one. Because to make trading decisions, implement trading behavior of investors themselves, study the foreign exchange market, investors are also concerned about other people itself. Resulting in profit and loss results are investors themselves, assume breakeven results also investors themselves. This is the most difficult one stumbling block.
Third: others
This is every investor can not get rid of a stumbling block, and is caused by the most troubled one. In today's information society, no one can be isolated from the outside of the crowd, it is inevitable to be influenced by other people's lives, these effects are good and bad, it was hard to distinguish. The United States has a successful investor living in the mountains away from the earth, the annual trade only a few times to make big money at the same time, America's second millionaire Buffett live in Omaha, also away from the financial center of Wall Street. But we can do so clever and strong, after all, a minority investor.
Fourth Only: Investment Decision
This is a profitable way to invest a key stumbling block. Wise and thoughtful investment decisions towards the end of our investment will win, but stupid, impulsive investment decisions will lead our investment losses and failures. In this session, investment decisions will be influenced by the previous three stumbling block by the investors to make the final decision.
Fifth Only: transactions
This is a crucial stumbling block is the final step in the way of profitable investment. Common sense, transaction behavior has been determined by the investment decision-making areas, just do the same at this stage to perform on it.But in fact, the actual transaction behavior is often independent of the investment decision, investors are a variety of reasons wanton tampering. Control this part, any part of the effort to be as much than before.
This five stumbling block must be completely tame, we can enjoy the taste of success.
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Three simple methods to increase foreign exchange earnings


In fact, the most important financial transaction is the balance between risk and profit, everyone needs the ability to determine their own risk tolerance, on this basis, then consider reasonable financial management, and finally to seek is how to maximize profit.
Of course, the biggest profit is the ultimate goal of every trader, but to achieve this goal has three simple method in which the two are able to judge with common sense out of. These two methods employed most people, but at the same time may increase the profit situation also increases the risk, so be careful to use. A third method of the hardest, but the most reasonable and should be everyone's direction.
First, increase positions
This is the simplest and most commonly used method. If the trading system of long-term return on investment is positive, that is, long-term profitability, which would be a workable solution. However, when using this method is best not to because of the increased risk positions and expand the proportion, according to the risk and increase profits after the best account in the amount corresponding increase in positions. For example, an account of the original capital of ten thousand US dollars, the risk is set to 5%, with a stop 100 points, hand positions should be 0.5. When the funds to twenty thousand US dollars, the position can be a loss to single-handedly, the risk is still 5%, using this method trader must have greater mental capacity, because there will be a loss in the transaction, and this times must be one of the biggest positions, a lot of people because of psychological problems, at this time, whether the transaction gains and losses are likely to open too early, it may sometimes be profitable to trade into a loss. If the success rate is less than 50% of the trading system, should no longer be considered substantially increase positions method, because it might just increase the risk, increasing the deficit without increasing profitability.
Second, increase the number of transactions
Increase the number of transactions could theoretically increase profits, of course, the premise is a high success rate of the system. There are many people like to use ultra short-term way transaction, the transaction is very frequent, and sometimes the system can indeed make money, but relatively high transaction costs, because each transaction at least be a little difference. Brokers standing position'd welcome more transactions, because they will earn more, but they also need the rebate to their agents (IB), some irresponsible IB is to encourage customers to do more short-term, and sometimes their rebate even popcorn seed money more than the customer, so some brokers had to reject "scalping" (ultra short-term Scalping) and Exchange Act, and excessive trading also tends to paralyze the server, this kind of increase in the number of transactions is not this article within the scope.
Suppose there are two trading systems, a special trading gap (Gap), and another special transaction escape (Runaway) (upward of one, but the price gap and did not make up the gap back to the original and the upward direction development of). Suppose two systems of reward / risk ratio is 2: 1, gapped system can trade five times a day, but the escape system to deal five times a month, we can quickly conclude that the system is definitely better than the long-term upward escape system earn several times more money. This is of course an extreme example, but it shows that if other conditions are the same, the number of transactions and more systems than the number of transactions in the system less earn more money.
Increase the number of transactions also implies the need for more time, so sooner or later some people consider using automated trading systems.
Third, to find a better reward / risk ratio of transaction
Better than the above two methods is only trading high reward / risk ratio of opportunities, trading only 2: 1 or even 3: 1 or more opportunities. This trading method first requires adequate technical, the second must be willing to give up, not when you want to deeply understand the transaction and equally important when the transaction, the third to have enough patience.
By contrarian trading laws generally stop relatively small, then use the Fibonacci numbers, etc. Odd estimated earnings targets, if they can achieve the desired return / risk ratio to do alone, or to give up, but may have some pretty good opportunities , then you can also consider implementing. Usually this opportunity will take time, and not at any time, so have enough patience.
This approach is clearly better than the two methods, but also expanded the profit, while reducing the risk, and do not need a long stay in a computer before, but unfortunately, not everyone has the ability to use this method.
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Forex do one of 12 of the Code


Many people want to get rich in the financial markets, which led to frequent back to do a single, and frequently do a single, direct cause of the loss is the professionals - the number of stops too much. Without loss of professional people frequently do not single, but I do not know open positions and stop-loss caused. To add that stop-loss orders, but also constitute the entire transaction, a successful stop, to avoid the possible risk, this list is a success, we must make money is not to say that the success of the list.
And frequently do one, is the "art" direct cause of the loss of people, how to avoid such a situation? Actually very simple, every day in Europe to do a disk tray US market, big money generally only push round. After taking to the target.While the back of the stock market is not a slight adjustment was a substantial adjustment. You see that day is not yet.Therefore, the following special provisions of Article 11. It can be said that the real earnings of things need to be added after Article 11 of the Code. Finally, and constantly improve the other 12, though equally important, but are listed in the following order according to the system. It can be used as short-term criteria.
1, the trend is not clear not play.
2, in a large channel to do homeopathy alone.
3, a small trend support and pressure to find a place close to entry points.
4, opening at changing trends, must comply with 123 rules.
5, always have to set the stop loss, stop-loss can not exceed the width of the channel would not do more than a single.
6, profit and loss ratio must be greater than 2: 1.
7, in the single bottom (top), double bottom (top), three bottom (top) established at the list.
8, each 5% stop after opening losses exceed the funds can not be opening.
9, according to market relations valley trailing stop line.
10, a major thoroughfare in the border initiative earnings only half positions.
11, Europe and the Americas disc tray each doing a single (or a round). If the stop, according to three backhand, also only a single (or a round).
12, does not hold a single through the week.
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Ultra-short-term trading forex trick


Forex market can do more can be short, you can access dozens of times that day, and it is difficult to be manipulated by the dealer, especially suitable short-term traders. For the real exchange ultra short-term traders, trading is not a zero-sum game, where the land is gold everywhere Jieyou opportunity to make a fortune, for traders with cheap, they are engaged in the world's best job, they In lower risk situations, making the other sectors beyond the dreams of people profits.
Short-term traders have also a skill. Forex investors want to profit from the short-term trading, foreign exchange speculation need to have some skills. Short term trading relies entirely on the mental, emotional and feel. If investors thought today can do, then do it. Then the next foreign exchange through financial investment in training small series just like to share forex trading very short-term trick there?
First, I want to be happy. If you think short-term trading is not simple, it is painful, do not do it. The so-called short-term trading is the shortest day of trading, the day into day out, did not miss the night. Long-held position long nerve-racking, but short-term trading night, sleep peacefully at night. Because the holding time is short, time is too short to worry about. The purpose in seeking to stimulate short-term trading to find happiness, no small achievement this purpose, do not try ...
Second, some knowledge of technical analysis, three and ability, seven by feel. Little emphasis on the word, learning to understand too much, you can go to when formal technical analyst, and what need do short-term self? School half a day you can learn to repair taps, just learn one day technical analysis can be done short-term. That what you want to learn? 30 minutes chart, will draw the trend line, will use very short-term average, the case only. The other is to look at market indices, listen fundamental news, the feel engaged.
Third, there must be high school level mathematics. Aware of the factors in winning probability short-term trading. In fact, he says the probability of secondary level it is nice, maybe never had this little problem of people know arithmetic.After the short-term trading Jincang situation rise or fall, usually half and half. That short-term trading what surplus it? So that when the surplus earned one yuan, lose pay 0.5 yuan .100 second time, the surplus 50 times, lost 50 times, lost 50 times to pay 25 yuan, the final total to earn 25 yuan. This is a short-term trading in the only wins count, the other party no good way to my heart. So after entering, the direction of the run about to let it go in order to reach the target; the wrong direction at once psychological considerations played no room for fate.
Fourth, the large situation is wrong, regardless of the length of time, no deal. When the situation is right, the odds will be higher than in the preceding 50 pairs 50 many. The situation does not like riding a clever for their own short-term trading will take a long vacation, no need to struggle with the potential, and there is likely to lead to casualties. What is the situation wrong? That is, if the continuous opening are lost, it is certainly their own state there is a problem, short-term traders have to give yourself a few days off, adjust their mentality.
Fifth, the short-term trading is not every day the transaction. Do short-term traders who called on, but not day trading.If you make a deal today, do not expect to re-entering the $ 500 to earn $ 500 tomorrow. The benefits of short-term trading is as if their own business, you can choose which day to do one day do. You do not choose the Fed to announce that do not rise up short-term interest to do that day, the day that is the theater of the day. Short term trading relies entirely on the mental, emotional, feeling. You must determine your day in a good mood, can concentrate undisturbed trading; at the same time, you have today, the market will have a strong feeling fluctuations can make money. What short-term transactions do take it as a career, studying one to two common currency fluctuations, the election to the "auspicious", I thought today can do, open the door to do it.
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Foreign currency deposits four basic skills


How foreign currency deposit most cost-effective? This is a lot of people want to know, although the exchange rate risk, but compared with the RMB, foreign currency deposit interest rate is floating. This is for those who need to hold a certain amount of foreign currency, the mastery of basic skills are very important.
Skills I: Follow Bank's latest promotions
Currently, according to the relevant provisions of the central bank's foreign currency deposit rates, banks for multi-currency fixed deposit interest rates have great discretion, the upper limit of the central bank in the regulations, banks are free to determine the short-term foreign currency time deposits and 2 year Small interest rate of foreign currency deposits.For the needs of their own business development, different banks in the same currency savings interest rate disparity, many banks will launch various promotions from time to time. As in September 2011, the interest rate one-year deposits in Chinese banks, the Australian dollar interest rate of only 1.5%, while the money in foreign banks, will get four times as much income. HSBC launched a Australian one-year deposit interest rate of up to 7.4% of financial products, Standard Chartered Bank Australian one-year deposit interest rate as high as 6.7%, Hang Seng Bank, the Australian dollar one-month deposit interest rate was 6.5%.
Skills II: Stay current market dynamics
As foreign currency deposit rates are generally influenced by the international financial markets, the stability is poor, more frequent changes in interest rates and volatile ups and downs, so more need to pay close attention to depositors, timely adjustment must not be like after RMB savings deposit into the general sit back and relax ʱ??
Skills III: with cash, cash accounts
Currently foreign currency savings accounts in accordance with the nature of classification, foreign currency deposits can be divided into "cash account" and "cash accounts." General depositors receive remittance, it is best to direct deposit cash accounts, when you need cash, then how much to take, can not easily be "cash account" money into "cash account", because "cash account "Whether it is remitted abroad or exchange renminbi, line managers need to charge a fee for a certain amount, and the" cash account "generally do not charge less charge fees.
Four Skills: "double currency deposits" to avoid
"Dual currency deposits" is a personal foreign exchange trading derivative products, foreign exchange savings options structure contains a client based on the designated foreign exchange banks offer. Although the product allows the depositor to achieve higher than the average deposit interest income, but depositors should bear the due date of the implementation of the two sides agreed in advance the price of the original deposit currency is converted into risk-linked currencies, and therefore, its risk than the general Savings to be high, the average user should be avoided.
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FX principle of operation

FX principle of operation

Many novices do not do major reason money management and risk management of the principles of operation of the market without understanding. Simply do not know what to say in the end. So it should be easy to explain the currency in the end is how it works. Foreign exchange market is the world's largest financial market. Principle of operation of the market with the principles of operation of other financial markets are basically the same. In the market bullish, is not optimistic about the two sides do business in a certain range.
According to a recent example of actual trading. For example, before the euro zone 1.3300-1.3480 hovering doing business. The main reason for the activities of currency options with a large formation of these wandering regions have a close relationship. That 1.3250-1.3300 and 1.3480-1.3530 euro zone has a large area sits options to protect those areas.Technical analysis of the people in this region called support and resistance areas, experts will say the sale of the hands of large option sits areas. Whatever we have to respect the existence of the market. That is, in the vicinity of 1.3300 euro to buy, sell near 1.3480 euro should be in line with one of the trading market operation.
Because that's what the market do, we do with them. The problem is that these options have the timing or hovering area and will not for a long time in there. At the same time unpredictable factor would come in at any time of messages, at any time will destroy the existing wandering area, balance area. Changes is eternal, the balance is temporary. One of the euro zone lingered, 1.3300 to break through, and under normal circumstances, when a lot of options will occur in the market, spot trading in the big move. Usually do business in the area, when hovering, spot trading has its own hand, stop, stop turning point.
Generally do not leave the area of ​​extreme hovering 50 points. and so. 1.3300 to break, these promising positions Euro spot should stop or stop rotation. For professionals 1.3300-1.3250 area should have a rotation stopper. As a result, the balance of power could have become one-sided force. Tendency to form one-sided, unilateral city. Great changes have taken place in the options market. In order to hedge the option near the 1.3300 bullish euro, those banks to sell a lot of cash euro to hedge their options to ensure that will not lose money.
It is generally break after wandering Pacific market is very fast, completely one-sided market. It is for this reason.Those wandering area after breakthrough, the minimum length of unilateral market square would win their hands full distribution warehouse, with each other to find a balance of power so far. Target minimum amplitude trend running about with almost hovering area. That is the minimum target 1.3100. Long-term, medium-term, short-term steps are the same. Of course, to 1.3100, then look at how the operation of the market situation.
Those wandering area destroyed city after unilateral action, called the trend. Wandering in the market area was destroyed after trading with the trend is another market operation accord. Because the market is supposed to work, and we keep. That is, in principle foreign exchange trading in line with market operation only two. First, after the break with the trend hovering zone, second zone at both ends of wandering trading. This is the simple principle of the foreign exchange market is in the end how it works. Why have lingered area, why there is a tendency of principle. Of course, this does not guarantee that we'll continue to break through in the direction of a breakthrough after wandering area. However, the opportunity to break through in the direction of the big. So we were going to break through in the direction wagered large surface. The market is always a chance things are not so big problem.
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