How to do a good job of money management in foreign exchange investment

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Most of the precious metals investors encounter trading losses, summing up its causes will always be attributed to a bad mentality, operating strategies on the stop loss, stop-win, the formulation of the wrong, strict implementation of ineffective, etc., in fact, are not all worth noting cashbackforexbtc that the most critical to the profit East forex cashback loss of precious metals investors is how to better use of money management Precious metals investment is actually a system engineering investment success or failure. In addition to the accuracy of the Eastforexcashback analysis, capital management, risk management, experience, trading skills and luck are all very important factors, especially in the international precious metals market, the trading mechanism is leveraged trading), investors can trade 50 times or even 100 times their principal amount, which determines that margin trading is a high-risk, high-yield investment if there is no perfect capital and Risk management, the failure of a transaction, it is possible for investors to give up or lose all their money. Another understanding of the so-called system engineering is that investors invest in the precious metals market, the profit and loss of a transaction does not mean anything, the investor should pursue a stable and sustained profit, because even if the initial transaction to obtain a huge profit, the market will eventually have to be returned, and even the capital is lost into the precious metals market is not a casino, investors Not a gambler, the investment made more can not be equated with gambling the failure of such people is precisely because they do not know these, but also did not learn to survive in this market experience and skills According to the authors experience and understanding of some successful peers, investors who want to get long-term stable profits in the precious metals market, the market analysis of the right and wrong at most only 30% of the success factors, capital and risk management absolutely accounted for The most important element of risk management is how to stop loss, followed by how to stop win As people usually understand, revenue and risk are twins, and money management and Risk management also needs to be cleverly combined to maximize returns and minimize the balance of risk Next, the author combined with graphics first introduced several commonly used cashback forexs of capital management and use, various methods have their strengths and weaknesses, the key is still how flexible investors use capital management methods vary from market to market: The first method of capital use is commonly known as the pyramid mark-up method assuming that the investor has a principal of $100,000. Investors in a certain point, such as gold 1400, buy 30,000 U.S. dollars; to be gold rose to a certain point, such as gold 1500, investors believe that gold will continue to rise, but there has been a period of rise, the back of the upside may be more limited, and thus again to buy when the amount of funds reduced to 20,000 U.S. dollars; to gold 1550, investors still think will continue to rise, then add to buy, and because Now the rise is greater than the first increase in the position, the upside may be smaller, so put in less money than the first increase in the position, such as 10,000 U.S. dollars The second method is called the inverted pyramid mark-up method, with the above our understanding of the pyramid mark-up method, our understanding of the inverted pyramid mark-up method is much simpler Also take the above example as an example, the inverted pyramid mark-up method is to buy 10,000 U.S. dollars, then buy 20,000 And then to buy 30,000, each time to increase the position of more and more money, and therefore called the inverted pyramid method This method and the pyramid method of adding the difference lies in the investors judgment on the market at the point of 10,000 U.S. dollars of gold, the investor is not yet very sure of the gold trend, so small capital intervention; to 20,000 to buy the point of the trend of the market more certain, then increase the amount of money invested; and to 30,000 to buy the point, the investor determined that the trend will continue. Investors determine that the trend will continue, more certain, put more money investors to the degree of certainty of the market to determine the size of the funds invested, the greater the certainty, the more funds invested It can be seen that this method is more aggressive relative to the pyramid plus method, to investors to the degree of certainty of the market as the criterion, the relative subjective judgment of the composition of more, the possible profit space, of course, may suffer losses are also large

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