Home How to control the position of foreign exchange margin trading

# How to control the position of foreign exchange margin trading

foreign exchange margin trading, generally 1:100, 1:200 amplification of the transaction, so that you can make a small profit last year, the foreign exchange market volatility, creating a lot of opportunities to make money, but also everywhere forex rebate club the opportunity to blow the position I said to a friend who just opened a foreign exchange account, blowing the position is as common as eating based on my lessons learned from many blowouts, summarized the following three cashbackforexexness blowing the position The direct cause  1, the direction of the reverse  2, did forexrebateclub set a stop cashbackforexbroker  3, the position is heavy  These three points are often combined to the role of the direction of the reverse in a range, even if the position is light, it is difficult to control their trading emotions cashback forex range fluctuations habit of people, will be the more against the more positions, which will often be substantially profitable again back but once the range is broken, the Blowout inevitable  do foreign exchange trading, who can not 100% direction correct, especially to do small and medium swing, 500 points to 200 points between so set a stop loss is to prevent blowout protection  there is a situation,  put back to set a stop loss will also lose a lot, is a heavy position for example, you have 1000 U.S. dollars to do 1 lot of transactions, fluctuations a little is 10 U.S. dollars The stop loss is set at 50 points, hit the stop loss on the loss of $500, losses in general so that the big gains and losses of the transaction is also bound to the road to burst positions I myself summarized an appropriate position ratio for your reference account capital of$500, the minimum trading unit 0.01, leverage 1:200.  According to Venn 21 trading discipline, each transaction can not lose the total 10% of the principal as the standard, the following settings  1, $500 to do 0.1 lots of transactions, and so on 50 dollars to do 0.01 lots of the proportion 2, important opportunities to trade when the single stop loss is 50 points Why is 50 points? So that$500 to do 0.1 hands, 50 points stop loss loss of $50 so that the loss of funds did not exceed 10% of the total principal! This 50 points is an empirical value, if you want to set 100 points stop loss, the position will have to be reduced by half, 500 dollars can only do 0.05 hands, so if the stop loss out, the amount of loss is also 50 dollars This is all in line with the proportion of each loss can not exceed 10% of the total principal understand this principle, you can flexibly adjust the position 3, in Occurrence of trading losses, the future trading position to be adjusted downward to Article 2 for example, the original 500 if a continuous loss to 450, then the future of the repositioning lot to become 0.09, so that the original 50 points stop loss of$50, now it becomes a loss of $45, or not more than each loss does not exceed 10% of the total principal principle 4, the same, if the profit after the increase in capital The position can be expanded, for example, now earn$300, there are $800, then the maximum position is 800/50 = 16, is 16 0.01 hands is 0.16 hands, because it is the proportion of$0.01 with $50 orders,$800 is 16 50 dollars so derived from this result  5, if you think that each loss of 10% more, want to each loss does not More than 5% of the total principal, then in the case of unchanged stop-loss points, we must adjust the position to adjust the position to 100 U.S. dollars to do 0.01 hand ratio  The above is to protect the overall principal point of view of how to arrange the position that the 50-point stop loss is a certain, not stop-loss point settings usually have three methods  1, the overall capital security protection method is the method described above  2, the technical level stop loss is a certain, not stop-loss point settings usually have three methods  1, the overall capital security protection method is the method described above  nbsp; 2, the technical level stop-loss method  In the technical level stop-loss method, it encountered a new problem, but the calculation is the same as the method above, such as 1.4500 breakthrough for more pounds, breakthrough after the breakthrough to 1.4430 broken, representing a false breakthrough, and the buy point is the breakthrough point above 20 points (in order to avoid false breakthrough), is 1.4520 points, so 1.1520- 1.4430 = 90 points of the ratio, plus the two-way 8 point spread, is 98 points so that in order to control the loss does not exceed 10% of the total principal, you can not $500 to do 0.1 hands, but$ 500 to do 0.05 hands how to calculate the above 5 points in the example  3, the combination of the first two methods of application here to say a principle is that the above two methods of stop loss points are not the same time. If the technical points are greater than the permanent 50 points according to the technical points stop loss and adjust the position as 2 example is such a situation when the technical points are less than the permanent 50 points stop loss criteria, set by technical points such as buy points from the technical break only 25 points so that if you want to play the advantages of leverage can be $500 to do 0.2 lots of transactions, because of this loss 25 points stop loss out, a total loss of$ 50. The same did not exceed the principle that each loss does not exceed 10% of the total principal  above said examples of the situation are calculated by the maximum position as to the choice of loss ratio is not more than 10% of the total principal or 5% or other, according to their own risk aversion to the situation but the upper limit is best not to exceed 10% of the ratio  and this position ratio said earlier, is found when the market important opportunities Generally 200 points to 500 points of opportunity, if you like to do short term small fluctuations in the position to be even smaller, I suggest the above position ratio of 1 in 3. because the stop interval is small, so the stop loss point settings should also be adjusted appropriately small  that the above important opportunities generally how much time to occur once, in my personal experience is that the 200-point swing opportunity a day is also 2, 3 times, so do not trade more than 3 times a day. So do not exceed 3 transactions per day, if you catch bad luck, 3 consecutive losses is a loss of 30% of the principal ah and 500 points swing opportunities, a week can have a 2, 3 times on the good so to reduce the transaction especially the largest position trading ratio of transactions (the above are calculated by the largest trading ratio position)   Finally, another suggestion is to make money by a certain proportion to take out because the burst position is as normal as eating, the uncertainty of this market is too much to the money in hand is their own ah