Forex Trading · Ask yourself · Are you clear? · Reminder List
|= YES | = NO | = YES & NO|
|Fund Size||Big Fund Trader||Medium Fund Trader||Small Money Trader||Micro Money Trader|
|Stick to leverage 1: 1|
|Trading bottom and top|
|Hold long terms positions|
|Follow moving average|
The truth about forex trading!
* Long-term forex trading: The long-term trends of the major currencies pairs can be forecast and grasped.
* Short-term forex trading: Even short-term trends of the major currencies pairs can not be forecast and grasped.
* Long-term forex investment: The directions of the major currencies pairs, if the investment time is long enough and the leverage is 1:1, the direction can be determined.
* Short-term forex speculation: Even the major currencies pairs, because the investment time is too short, the leverage is more than 1: 1, the risk is uncontrollable, and the direction cannot be discerned.
* Long-term forex trading: Based on interest rate data and several years of fundamentals.
* Short-term forex trading: Based on the very important data and forex trend chart released every week.
* Funds of forex trading: Big money searching and trading at the bottom and top is right. Small money can't do it because there's not enough money.
* Duration of forex investment: It is correct for large funds to searching and trading at the bottom for a long-term, and it is a long-term position. It is not possible to searching and trading at the bottom for a short-term, because the money are insufficient and they cannot bear the risks.
* Strategies are always different: Breakout strategies are suitable for small money and short-term trading, but not for large funds. carry trading strategies are suitable for large funds and long-term trading, but not for small money.
* Non-stop loss strategy: suitable for several major currencies pairs, suitable for long-term, positive interest spread, leverage 1: 1, even if you trading in the wrong direction, as long as you wait for a long time, you will eventually profit, but you will lose time cost and capital utilization cost.
* The difference between short-term trading and gambling: a) The short-term forex trading with stop loss is risk-controlled gambling, and the gambling trend is high or low. b) The short-term forex trading without stop loss is gambling without risk control. Because even if there are several major currencies paris, the short-term trend cannot be controlled. Only the long-term trend can be predicted! Conclusion: short-term forex trading = gambling!
* The truth of stop loss: The importance of stop loss is strongly touted in forex trading，that is a lie of the forex platform merchant, If you stop loss, the platform merchant not only eats your stop loss, but also eats your capital. This is why most of countries in the world ban forex trading. The truth: make long-term forex investment, not short-term forex speculation!
* Moving average crossover · short-term: In short-term forex trading, if the general trend is rising, the moving average dead crossover is the opportunity to close positions, not the opportunity to make a new position order. The real entry opportunity is the golden crossover of the next period. The data and market open time is superimposed, the chance is better. If the general trend is a fall, the moving average golden crossover is a chance to close the position, not an opportunity to make a new position order, the real opportunity to enter is the dead crossover of the next period, if the data and market open time is superimposed, the chance is better.
* Moving average crossover · short-term, often counter-intuitive: The reason why short-term traders often do the opposite is that the amount of money is too small, the mentality is too urgent, want to make money too much and to seize every opportunity, and too short time to communicate with the screen! The accumulation of forexc trading experience is not enough!
* Moving average crossing · long-term: After the crossover of the long-term trading averages for a large period of time, it may be followed by a long consolidation, and the wait will be a long time. Even moving average crossing is only a symbol, not a trading signal!