Important factors to consider before opening a position

Having been engaged in foreign exchange investment for many years, I deeply feel the importance of trading discipline. When speculating in foreign exchange, you can make a wrong analysis, and you can make a wrong direction, but you just have to abide by the trading discipline. If you make a mistake in the direction, you can start over again. If you don’t follow the trading discipline, you will be kicked out of the market sooner or later, because every foreign exchange speculator has limited funds. Trading discipline can effectively protect your funds, unless you have unlimited funds. Then you are always a winner.

In fact, our foreign exchange speculation also has a defensive process. Before you place an order, during the order, and every step of closing a position, there are many points to pay attention to. To sum up, when I made orders in the past few years, it was often just random orders that lost me. All profits, so put an end to random orders, and deal with each order rationally will be my operating principle in the future.

Because the foreign exchange market is highly variable, overemphasizing discipline will lead to rigidity. I do not reject making orders based on market sense, but market sense operations are only limited to short-term transactions. If you want to do mid-term and long-term transactions, you must not abide by trading rules and discipline. Yes, here are some of my trading discipline documents for your reference and discussion.

Before making an order:

　　1. Whether it is consistent with the current trend;

　　2. Whether there is a K-line form technical support;

　　3. Whether the moving average trend and morphological characteristics have been analyzed.

　　4. Whether you have analyzed the shape of the weekly and monthly lines and the KDJ bonded gold fork and dead fork.

　　5. Whether the planned order volume is too large;

　　6. Whether a stop loss price has been set;

　　7. Whether the price of increasing the position is planned (in the case of floating win);

　　8. Is there a stop profit price set?

　　9. Place an order.

After making an order:

　　1. When the stop loss position is reached, strictly implement the stop loss price, regardless of whether the order is wrong or right in the future;

　　2. After closing a position at a loss, never backhand, adjust your mentality before entering the market;

　　3. Strictly abide by the remedial principle of "don't leave after earning 10,000 yuan, and must leave when you earn the last point" after the failure of floating win to increase the position;

　　4. When there is a huge profit in the closing position, avoid entering the market and making orders immediately, and analyze and enter the market after calming down the joyful state of mind.