frank1 answered the question Should we continue to pursue orders when there is a sudden market situation?

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frank1

The definition of a sudden market must first be clear about what it is.

When the market moves rapidly, you must first stand on your own trading system to see if it meets the opportunity to enter the market.

Sometimes we see a sudden and rapid development of the market, which may not be a sudden market. In fact, the real sudden market seldom occurs, because it is due to the occurrence of things that everyone did not expect, which caused the rapid movement of the market, and this can be regarded as a sudden market.

For the occurrence of unexpected market conditions, my suggestion is to wait a little while to see whether the development of the market is consistent with the trading system, and then need to know whether the current events that cause market development will affect the market for a long time.

Taking the 4H trading cycle as an example, when a sudden market occurs, we judge through the channel of the market whether the trend has broken through the original range and whether it is in line with the trend of the daily line. If the market broke through the recent key position at that time, then the market may continue. At this time, it is suitable for chasing orders, and it is very likely that this wave of market may have good returns.

The second possibility is that the market seems to have broken through a key position, but it did not go far and then quickly retreated. At this time, you need to be cautious in chasing orders, because this "sudden" market has no influence. But at the same time, you need to consider whether the overall direction of the trend is the same as the original trend direction. You can refer to the original trading rules and wait for a suitable entry position.

The third possibility is that the market quickly breaks through the key position, and the market develops very fast, breaking through the key position continuously in just a few hours and producing large fluctuations that have not been seen for many years. This kind of market is an irrational market. Due to the rapid development of the market, a series of large stop loss orders are continuously triggered and unilateral speculation in automated trading is caused. However, this kind of market tends to last for a short time. At this time, there are orders in hand, regardless of profit or loss. It is recommended to wait and see. Do not enter if you do not have an order in hand.

The fourth possibility is that the market breaks through a key position, but pulls back quickly on the second day and breaks the original trend direction. If it is an order entered on the first day, if the direction is wrong, you have to wait and see. If the direction is right, you can consider holding it and continue to wait for the market to develop. You can observe whether you can increase your position when it retreats. This is often the beginning of a trend reversal.

If the subject often sees the rapid development of the market and thinks it is a sudden market, it is recommended to continue to hone the trading system and trading philosophy, otherwise the possibility of irrational trading is very high.

The following is my understanding of the sudden situation:

1. Sudden trend caused by geopolitical crisis.

2. A regional public health crisis or a broader crisis, such as the impact of the epidemic

3. A unilateral market caused by a sudden change in the monetary policy stance.

4. Impact of natural disasters.

Last updated: 08/21/2023 05:18

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winter spring autumn summer

In the face of drastic market changes, we need to have countermeasures, instead of snapping our thighs when the market comes, or even going against the trend and smashing the pot.

First of all, we need to be clear about the fact that the financial market has its own laws, independent of human will, and its future trend is also uncertain and cannot be accurately predicted. What we can do is to use various methods, including fundamental analysis, technical analysis, volume price relationship analysis, market investor sentiment indicators, market public opinion situation, etc., to predict market changes and make our own analysis and judgment consistent. Follow the trend of the market.

Since the market itself cannot be predicted, what we can do is to improve our risk control capabilities and make various plans: when the market is trending, follow the trend closely; , How should we deal with it to ensure the safety of principal and profit margin.

Therefore, when trading, do not blindly guess the ups and downs and bet on the direction , but to confirm the market trend and improve your own trading system.

Secondly, the trading system is different for everyone, because there are differences in their own experience, investment level, capital amount, risk preference, position management, etc., and there is no one-size-fits-all law. But generally speaking, it is necessary to avoid emotional trading, but to execute transactions according to one's own plan.

When investors encounter sudden market conditions, traders often choose to place additional orders. After all, the purpose of our investment is to obtain profits. With such an opportunity in front of us, I believe that most investors will choose to pursue orders . Then let's talk about some skills of chasing orders in gold trading.

1. Chasing orders

The quotation changes in the gold market are presented through the K-line chart, and the market resistance and support levels can be obtained through analysis. When the market quotation breaks through the resistance level or support level, investors can follow up orders at this time, but It is not advisable to chase too many orders, just chase orders at 3-5 US dollars, if too many chase orders, the market shrinks and it becomes a loss.

2. Market volatility strongly pursues orders

When some international news or economic data is released, the changes in the gold market will be obvious, such as the release of non-agricultural data. Investors can implement follow-up orders based on their own analysis before these data are released, so as to obtain profits in advance. Similarly, in the process of data release, investors pay attention in real time and make the next step at any time.

3. Chasing orders at market opening

The gold speculation market is an international market, which is carried out alternately by three markets in Asia, Europe and the United States. When the European and American markets open, the market will fluctuate more violently due to the release of some data or the orders placed by the main force of the market. During the trading hours of the European and American markets, investors can properly pursue orders, but not too much. Because the market trend is not very obvious.

4. Quick fix

Chasing orders is actually a trick to use market fluctuations to make additional profits, but investors should not be addicted to chasing orders, and must make a quick decision. Once addicted, not only the cost, but also investors will be lost mentality.

In short, for unexpected market conditions, in addition to some skills, it is more important to see whether the market is within your trading plan and whether the market trend is in line with your own trading system, and then decide whether to pursue orders.

Last updated: 09/02/2023 03:43

汇市漫谈martin

fast paced do not chase

Entity can track

But because the cycle is extremely short, it needs to be fast in and fast out. Or urgently move and follow the damage. In this way, you can chase without watching the market soaring.

Last updated: 09/07/2023 17:51

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