First, position control.
When conducting foreign exchange transactions, establishing positions is the first thing investors should do. The control of the position also begins when the position is established.
Simply put, the control of the position can be said to be the size of the position when opening the position. Under normal circumstances, when an investor opens a position, the size of the position cannot exceed 20% of its total capital. For example, if an investor has $65,438+$0,000 in his account, the size of the position cannot exceed $200 when establishing the position. Otherwise, investors have a great chance of short positions.
Second, increase or decrease positions.
Adding positions and reducing positions are the most important ways for investors to increase their income. If investors want to increase or decrease their positions, they need to abide by the strict and basic principle that the original positions have been profitable. If investors blindly add positions at a loss, they will only lose more and more in the end.
When adding and reducing positions, the most commonly used methods are pyramid-type adding and reducing positions. The so-called pyramid method of adding positions and reducing positions refers to adding positions and reducing positions from more to less according to the pyramid method. Every time you add positions, there are fewer positions than the last one, and the same is true for lightening positions.
Third, actually control liquidation.
The timing of liquidation is one of the decisive conditions for investors to make profits. Closing your position too early will cost you a lot of money you should earn, and closing your position too late will only get your profits back.