#小白教学 Six basic rules for position management in the currency circle! ! ! !
First: Never operate with a full position, always maintain a certain proportion of spare funds
Operating with a full position is like fighting on the battlefield without a reserve force. Especially when the market is unstable, if the full position falls, it will cause a passive situation where buying and selling are difficult. If you sell, you will lose money. If you don’t sell, there will be no extra funds to add positions to dilute the cost. When other market conditions come again, there will be no funds to use or you have already lost money. Holding a full position will cause an imbalance in mentality due to market fluctuations. The greater probability of a full position operation is a position explosion rather than a fantasy of getting rich overnight
Second: Buy and sell in batches to reduce risks, dilute costs, and magnify profits. The advantage of buying in batches downward and selling in batches upward is that you have a lower average price than others and higher returns.
Third: When the market is weak, you should hold a light position, and it is best not to exceed half a position in a bear market. When the market is strong, you can increase your position appropriately. In a bull market, the recommended limit position is 8 layers, and the remaining 20% short-term or reserve funds are used to deal with unexpected events.
Fourth: As the market changes, you should make corresponding position adjustments, increase or reduce your position appropriately
People are alive. When the market is strong, I can reduce my position appropriately to grab some profits. When the market is weak, I can increase my position appropriately to reduce costs. This is to make corresponding adjustments.
After increasing the position, a small rebound in price will also be very close to or exceed the cost.
For example: When the trend is obviously downward, you should reduce your position. When the trend begins to stabilize and rise, you should increase your position. When you are not sure about the market and don't understand it, don't increase your position or increase your position easily. You can increase your position when you see support, and reduce your position when you see pressure, and realize profits.
Fifth: When the market is sluggish, you can short-term short positions and wait for opportunities.
At the end of the bull market, the beginning of the bear market, or before the bottom stabilizes, you can short-term short positions or light positions to wait for opportunities, but as long as you still want to fight in this market for a long time, don't short positions for a long time, because if you don't participate for a long time, you will slowly lose the sensitivity to judge market changes, market sense, etc. Or you can use a small amount of funds to operate in the short market, summarize experience and skills, and exercise your sense of the market. For short market operations, you can make corresponding arrangements at the end of the bull market and the beginning of the bear market. This is very important.
Sixth: Position change: keep strong currencies and sell weak currencies
Whether it is rising or falling, as long as there is fluctuation, it is a good market. If there is fluctuation, there is an opportunity to make money. If a currency is sideways for a long time or the fluctuation is small, it is necessary to change positions flexibly