Skills of becoming a foreign exchange expert 1.8 major currency pairs
As a foreign exchange novice, the first thing you need to know is these eight currencies: US dollar (USD), British pound (GBP), Japanese yen (JPY), Euro (EUR), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD) and New Zealand dollar (NZD). Although currencies are traded in pairs, under normal circumstances, different currency pairs of 18 are often mentioned in the foreign exchange market, including USD/Canadian dollar, EUR/USD, USD/Swiss franc, Australian USD/USD, GBP/USD, NZD/USD and USD/JPY. There are far more than these currency pairs in the whole foreign exchange market. Many platforms can provide 28 currency pairs including the above examples and others.
2. About overnight interest
Currencies are paired, so in every foreign exchange transaction, when you buy one currency, you are selling the corresponding other currency. The central bank of the country where the currency is located sets interest on its own currency. When you sell money, you are obliged to pay this interest. When you buy money, you can enjoy the interest earned. For example, suppose that the interest rate set by New Zealand is 3%(300 basis points) and that set by Japan is 0. 1%( 10 basis points). If you decide to buy NZD/JPY currency pair, you can get annualized interest of 300 basis points, but you need to pay interest of 10 basis point, so the spread is 2.9% or 290 basis points.
3. Save money with a lower spread.
The difference between the buying price and the selling price of money is called the spread, which is based on? Point? Calculated. Foreign exchange brokers don't need commissions, but make money by the difference between the purchase price and the purchase price. Before trading, we should compare different dealers and different spreads, because the spread may be directly reflected in our profits.
4. Choose a reliable investment institution
Foreign exchange brokers are usually closely related to big banks or lending institutions because they need to provide huge leverage for their customers. Similarly, foreign exchange brokers will be registered with the corresponding regulatory authorities and licensed. You can find this information or other financial information and foreign exchange commission statistics on their website or the website of the head office. It is best to be authorized and supervised by the Financial Market Conduct Authority (FCA) in the UK. The supervision in the United States and Japan is also good. You can find a detailed description of these regulations on their official website.
5. The right tool = success
Foreign exchange brokers, like brokers in other markets, will provide customers with different trading platforms. These trading platforms usually have these characteristics: real-time charts, technical analysis tools, real-time news and data, and even provide support for trading systems. Before cooperating with the agent, you should make sure that you have used different trading platforms in advance. Brokers often provide technical and fundamental comments, financial calendars and other surveys.
6. Keep an open attitude towards the choice of leverage.
Because the fluctuation of currency exchange rate is small, the role of leverage in foreign exchange is relatively important. Leverage can be understood as the ratio between total available capital and real capital, which is the amount of capital that brokers can lend you for trading.
7. Reject brokers with bad reputation
Brokers with a bad reputation will use deception to increase profits. He may buy and sell before your preset point. Of course, no broker will admit that he has done this kind of behavior, and there is no blacklist for such brokers or institutions to report this kind of behavior in the market. Secondly, when you trade with the money borrowed from your broker, even if you have enough money to pay for the transaction, your broker can trade according to his own judgment. If your trade is in a downturn before rebounding to a record high, some unscrupulous brokers will ask you to add margin at the low point. The only way to determine which brokers will do this behavior is to communicate with people in the financial investment industry.
8. Basic analysis and technical analysis
Every transaction is different, and the best way to trade is to combine technical and fundamental analysis. Smart traders will use a lot of fundamental information when using technology to find the best entry and exit points in the market. Fundamental indicators include consumer price index (CPI), retail sales and durable goods. In addition, the meeting of the Federal Open Market Committee will also affect market volatility. Technical analysis is particularly popular among foreign exchange brokers, which usually includes Eliot band theory, Fibonacci research and axis point analysis.
9. Flexible use of foreign exchange strategy
There are many channels for successful trading in the foreign exchange market, but in order to take advantage of these opportunities, it is best to know your own strengths and weaknesses first. For example, do you prefer short-term planning or long-term planning? And how to use fundamental and technical analysis?
Practice makes perfect.
Foreign exchange is a decentralized market, and many traders will quote appropriate quotations according to different trading platforms. In this way, before investing your own principal, you need to understand the characteristics of each trading software. Open a simulated account for virtual trading until you get the same profit as expected, which is the ideal exercise. Many people quickly enter the foreign exchange market, and they will lose a lot of money quickly when they lack the ability. Before injecting capital, it is very important to take the time to learn how to trade correctly, and the best way to learn trading is to operate more.
1 1. Eliminate emotional interference when trading.
If you can't stop loss in time, don't set one? Mentally? Stop loss point. Set an automatic stop-loss point and take-profit point, and don't change them easily unless there are some special reasons. Make a decision and stick to it.
Trend is friends.
If you want to go against the trend, you'd better give a good reason. Because the trend of the foreign exchange market is often not parallel, if you trade according to the trend, then you have a great chance of success.
The most effective foreign exchange operation method the most effective foreign exchange operation method: follow the wind and move.
Investors who often speculate in foreign exchange will have an experience that the foreign exchange market will react immediately when the market expectation has just been released or the rumor has just emerged, but when the expected event is really realized or the rumor is confirmed, the market will often reverse.
For example, during the Fed's interest rate hike, before the interest rate hike, the exchange rate of the US dollar will rise based on market expectations, and on the day when the Fed actually announced the interest rate hike, the US dollar will actually adjust back.
Therefore, it is more appropriate for investors to buy immediately when they hear good news and sell immediately once the news is confirmed. On the contrary, when bad news comes out, sell it immediately, and once the news is confirmed, buy it back immediately.
The most effective foreign exchange operation method: pyramid method
After buying a currency for the first time, the exchange rate of the currency rose. If you want to increase investment by adding more money, you must follow the principle of "adding less money each time than last time", just like the "pyramid". Because the higher the price, the greater the possibility of approaching the peak and the greater the danger.
The most effective foreign exchange operation method: homeopathic operation
After buying and selling foreign exchange, when the market suddenly moves in the opposite direction, it is forbidden to operate in the opposite direction. For example, a foreign exchange continues to rise for a period of time, and traders chase after it and buy the currency. At this time, the market plummeted suddenly, and they wanted to increase the price when the price was low, in an attempt to lower the exchange rate of a single order and close their positions together when the exchange rate rebounded to avoid losses. At this time, traders should be especially careful, because if the exchange rate has risen for some time, it is likely to see a "top" at this time. If the exchange rate keeps falling and buying, but the exchange rate never looks back, then the result is undoubtedly a vicious loss.
The most effective foreign exchange operation method: market breakthrough
When the market breaks through, there is often a big market, which is most suitable for opening positions. Inventory refers to the situation that the exchange rate fluctuates within a narrow range. At this time, the buyers and sellers are evenly matched and temporarily in a state of balance. Whether in the process of rising or falling, there is a greater chance of making a big profit by breaking through the positions established when the market breaks through.
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