Learn more about the currency position management techniques in this article?

Speaking of the position in the currency circle, it is actually a similar concept to the position in the stock market. The position actually refers to the ratio of the investor’s actual investment and the actual investment funds, just like everyone now has an investment fund of 1,000 yuan, and the phone fee If you spend 300 yuan to buy a certain currency, then the position occupied by the currency you invest in is 30%. If you use all your investment funds to buy a currency, it is a full position. If you sell all of it, it can also be called a short position. In position management, it is divided into three methods: light position, medium position and heavy position.

What are the position management skills in the currency circle?

First: Do not operate with a full position and always maintain a certain proportion of reserve funds: operating with a full position is like fighting on the battlefield without reserve troops. Especially when the market is unstable, if the full position operation falls, it will cause a passive situation of difficult buying and selling. If you sell, you will suffer a loss. 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 available or you will be out with a loss. Holding a full position will cause mental imbalance due to market fluctuations. A full position operation has a higher probability of liquidating the position rather than getting rich overnight in fantasy.

Second: Buy and sell in batches to reduce risks, dilute costs, and magnify returns. The advantage of buying in batches downwards and selling in batches upwards is that your average price is lower than others and your income is higher.

Third: When the market is weak, you should hold a light position. It is best not to exceed a half position in a bear market. When the market is strong, you can place heavy positions appropriately. In bull markets, it is recommended that the limit position be at level 8, with the remaining 20% ​​short-term or reserve funds to deal with unexpected events.

Fourth: As the market changes, corresponding position adjustments should be made, and positions should be increased or reduced appropriately. People are alive. When the market is strong, I can appropriately reduce my position and grab a little profit. When it is weak, I can appropriately cover my position to reduce costs. This means making corresponding adjustments. After adding positions, a small rebound in price will be very close to the cost or exceed the cost. .

For example: when the trend is obviously downward, the position should be reduced. When the trend begins to stabilize and rise, positions should be increased. When you are unsure about the market and do not understand it, do not place a heavy position or increase your position easily. When you see support, you can add to your position, and when you see pressure, you can reduce your position and realize your profits.

Fifth: When the market is down, you can take short positions and wait for opportunities to come.

At the end of a bull market, at the beginning of a bear market, or before the bottom stabilizes, you can take short-term short positions or light positions and wait for opportunities. However, as long as you still want to fight in this market for a long time, don’t be short for a long time, because if you don’t participate for a long time, you will slowly lose your interest in the market. Change judgment sensitivity, disk feel, etc. Or you can use the short market to operate with a small amount of funds, sum up experience and skills, and exercise your trading sense. Short market operations can be carried out accordingly at the end of the bull market and the beginning of the bear market. this point is very important.

Sixth: Exchange positions: keep the strong currency and sell the weak currency. No matter it rises or falls, 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 or fluctuates for a long time The range is small, so you need to change positions flexibly. It is not about falling in love with a certain currency. You should choose wisely. Seize other market opportunities.

Investment advice for newbies in the currency circle

1. Technical aspects, including technical indicators, K-line patterns, and trading volume. Judgment of trends, identification of bulls and bears, grasp of buying and selling points, judgment of support and pressure, use of volume, price, time and space, etc. This varies from person to person. Some people don’t understand technology and have no interest, so there’s nothing they can do.

2. Fundamental analysis, including relevant macroeconomics, policies, supervision, the project itself, etc.

3. News, both bad and good news, operate when the news and fundamentals are good.

4. Time cycle, intraday short-term, medium-term, medium-long-term, long-term (trend trading), confirm the trading cycle, and achieve the consistency of the operation cycle, such as long-term, do not frequent short-term buying and selling operations. When doing a long-term trend, the adjustment fluctuations in the middle are acceptable. As long as there is enough space and it is a mainstream currency, the price will rise again.

5. Control your mentality, remember not to vacillate, implement the plan once you have made it, and don’t discount it.

6. Strictly stop loss. Stop loss is the worst plan. If the market reverses, don’t hesitate when it’s time to stop loss and escape from the top.

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