Doing foreign exchange trading, light positions do not mean that you will not liquidate!

Look at the market every day
forex财经


1 | ‌What is a transaction


1. Find high-probability profit opportunities when trading;


2. Then wait for such an opportunity to appear again in the market;


3. Admission;


4. Then go out as planned;



2 | About intraday bands


If you can't think independently and just imitate blindly, you will never succeed, because everyone's psychological maturity and quality of trading are different;


As a trader, if you just go along with it blindly and don’t have independence, you still choose to leave the market and find a more stable job;


Hearing is believing, seeing is believing, let alone on the Internet, so please don’t trust anyone, and don’t trust me. All you need to pay attention to the words in the post, and then carefully taste them. If it is beneficial to your own transactions, absorb them. , and then figure out something for yourself.


I don't want you to embark on the wrong trading path, remember the following words;


"If you do intraday swing trading, if you don't consider: different varieties, different time, and different volatility, that is, if you don't take these into account when doing intraday swing trading, what you say is useless."


This sentence is an introduction. If you can’t understand this sentence, it’s useless to talk about the method, so wait until everyone understands before playing intraday swing trading.


3 | Light storage does not mean that there will be no liquidation


1. Liquidation is calculated based on capital equity. Basically, 80% of the principal loss is considered liquidation, regardless of whether it is liquidated or not.


2. Purely light positions are not correct fund management, and the light positions promoted by most people in China are also incorrect, which is an irresponsible statement.


3. The basis for defining the weight of positions


The weight of the position does not lie in the proportion of the position, but in whether it exceeds the known maximum risk of your trading strategy. The weight of the position should be based on the potential maximum risk of your trading method.


So, before talking about light positions, you have to ask yourself:


(1) Is your trading method fixed?


(2) Do you understand the potential risks of your current trading strategy?


If you don’t know these things, it’s only a matter of time before you have a light or heavy position, because you don’t know anything about the potential risks in the future.


Of course, you cannot absolutely grasp the potential maximum risk, but you can control the known risks. If you don’t have a fixed trading strategy, you don’t know the potential maximum risk. When you start an order, you will feel dizzy regardless of profit or loss in a day. You don’t know how you make a profit or lose money. In this case, give You are 1 million, you do one move every day, unless you get enlightened halfway through, otherwise you will still be blown up, it is only a matter of time.


Regarding the position, the weight of the position does not lie in the proportion of the position, but in whether it exceeds the known maximum risk of your trading strategy.


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Last updated: 09/09/2023 02:48

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