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How to do a good job of money management a few methods

{}Posted in2023/2/25 12:04:57 | 4Browse

1. The overall r Forex rebate for Exnessk measurement of the capital account forexcashrebatevestors in ForexrebateforExness cashback forex investment, according to their own financial strength cashbackforexexness psychological ability to determine the amount of money in foreign exchange investment and can withstand the maximum loss for retail investors, each transaction cash are not more than half, for medium and large accounts, multiple transactions with cash should not exceed the total amount of funds This means that at any time there is always enough reserve funds to cover temporary expenses in case of a bad trade. The maximum loss per trade must be limited to 10% of the total funds, which is the maximum loss that the trader will take in case of a failed trade. In addition, attention should be paid to risk diversification in a single foreign exchange forexrebates should be limited to 30-45% of the total capital; in any one market group, the total amount of margin invested in the total capital is limited to 20-25%; in the related commodity foreign exchange market should be limited to 60% of the total capital. Capital, resulting in poor liquidity or miss better investment opportunities, while also maintaining the liquidity of funds 2. measuring the ratio of reward and risk The general rule of the foreign exchange market is - the number of losses is much more than the number of profits The margin system of the foreign exchange market makes the foreign exchange market is extremely sensitive, even if the market moves in an unfavorable direction just a little, traders have to bear the pain of closing positions Therefore, in In the foreign exchange market, most of the transactions are deficit, so the only thing traders want is: to ensure that the profit of profitable transactions is greater than the amount of loss of transactions in order to achieve this purpose, the ratio of reward and risk is necessary to measure in practice, for each planned transaction we should determine its profit target ( We weigh the profit target against the potential loss to arrive at a payoff-to-risk ratio, which is generally 3:1. Based on this ratio, we need to consider a trade with a profit potential at least three times greater than the potential loss before we can implement it. Because it is often inaccurate to estimate only the profit and loss targets, there are many factors that affect their variability, therefore, the potential profitability and loss amount should be multiplied by the probability of profit and loss respectively. In forex trading, the purpose of portfolio matching is to diversify the risk portfolio matching is a discipline, we can not bet alone, that is too risky; but also can not average force, the investment will be evenly spread to multiple projects, because the average use of force The so-called accurate to hit the hard traders often have a few key investment targets, as their maximum possible point of profit - the backbone of the force, and then set up a few points of diversification - auxiliary forces to prevent risk We can take a composite position trading method, the composite position is divided into follow-on positions and trading positions, follow-on positions are used to plan long-term goals, which requires the Set a farther stop-loss instructions, for the consolidation of the transaction, adjusting to leave sufficient room from a long-term perspective, these positions can bring the maximum profit, that is, the so-called backbone Trading positions are specifically set aside in the portfolio to engage in frequent out of, into the market short term trading positions, the stop-loss instruction period is short and flexible, its task is to detect risk, to ensure long-term profits, that is, the so-called auxiliary forces For example, a The market has reached a target, close to a resistance area, while the market has been overbought, then we can close the position for profit, or arrange a closer stop-loss orders, the goal is to lock costs or ensure profits if the trend later resumed, then we can also use the remaining trading positions to close the position back 4. A stop-loss order specifies the price at which the order will be executed. A trader must set a protective stop-loss order for his or her position by means of a reverse limit (close) order. Second, the trader should consider the volatility of the market, when the market is volatile, the stop-loss order should be set farther away; when the market is less volatile, it should be set closer. In the case of long positions, sell protective stop-loss instructions set below the market, if the price rises, we can also raise the level of stop-loss instructions to protect book profits; we can also arrange a good stop-loss instructions above the level of the current block, and when the breakthrough occurs can open a long position in time 5. grasp of the style of capital management in the foreign exchange market investment, success and failure is a very normal thing, all Investors will encounter the key is in the success and failure, we should do what? After failure, discouraged; after success to take advantage of the victory, increase the bet are very common reflections, but whether these practices are feasible, whether it is reasonable to be discussed Assumptions: you lost 50% of the cost of the transaction, then to recover the loss, you must earn back from the remaining 50%, at this time, if you take a conservative approach, it is difficult to earn back; on the contrary, only bold bets, loss is less loss, earn is a big profit if you just profit, has earned enough to double the principal, how to use the profit? At this time, if you adopt a bold trading style, with profits to double the trading position, it may produce such a result - even the principal will take in, lost and folded the army here need to consider the issue of stop-win Every traders record has a series of peaks and valleys, if the overall profit is an upward trend, immediately expand the market capital when just profit, just like in the uptrend, when the market In an uptrend, when the market is overbought buy the same, is very undesirable wise approach is: capital slightly loss, start to increase investment, increase the opportunity to re-investment; capital profit, then see good, do not be too greedy Do a good management of funds, can be said to be in the foreign exchange market has been half of the success As a successful foreign exchange investor in the United States said: foreign exchange investment is not the difficult part of the market strategy of foreign exchange investment The real change lies in the importance of money management experience Money management in the foreign exchange market investment, although full of dilemmas and contradictions, but its significance for those who succeed is extraordinary, we should fully understand this point to master the principles of science, learn from the experience of others, and then combined with their own style to form a set of suitable for their own Money management approach, in order to get everything you want