Learn to keep eye on the market, try to place an order at market price: Take advantage of the trend and strictly set the stop loss. Since the transactions are mostly short-term within the day, the previous day’s foreign exchange closing price is very informative, and the operational ideas should mainly follow the trend. In most cases, the previous day’s closing price was short, and the price was higher than the previous day’s closing price.Do you want to learn more? Visit trading 212.
-Avoid looking at only five minutes: The change in the price of foreign exchange can be divided into the market map, minute chart, hour chart, daily chart, weekly chart, and monthly chart according to the different time. Different charts have their own unique characteristics, and different chart features can be used to formulate different trading strategies. The characteristic of the 5-minute chart is that its fluctuations are usually not predictive of the direction of the subject. Traders make trading decisions based on the auxiliary indicators on the 5-minute chart. Using charts for short-term trading, you can’t just look at the 5-minute chart, but also refer to the longer-term chart. The goal is to understand the direction of the main body in the market before making a decision.
-Admission and control: The timing of entering the market mainly refers to short-term technical indicators. The choice of stop-loss price is usually based on the previous high and low points and short-term moving average indicators. Of course, the timing of the entry and exit must be strictly controlled, and the entry and exit must be determined.
-Risk control: Short-term trading is more suitable for trading in a consolidation pattern, short selling on the upper edge of the price oscillation interval, and doing more at the lower edge of the oscillation interval. In the extremely bullish and extremely bearish trend, it is necessary to avoid the operation of the counter-trend, because the technical indicators may be passivated and the trend changes rapidly. The short-term trend should be made in one direction to control the risk. The principle of protection is to avoid losing each transaction or losing more than the amount you can afford in the day.
-Mental control: There is also the two-eighth principle in short-term trading, that is, two points rely on technology and eight points to see the feeling. That is to say, in short-term trading, psychology, emotions, and feelings account for a large proportion of operations. In terms of technology, there is no need to be proficient in the door. As long as you will watch the disk and understand the line drawing, the trend line will be basically short-term average. If you feel it, you can trade according to the daily trading rules. Of course, you should maintain a peace of mind, avoid the subjective and perceived sense of direction, and win a stable ratio of trading funds.