Six strategies to control trading risks

1. Fund diversification and stop-loss strategy: Divide your total investment capital into five parts, and invest only one-fifth of the funds in each transaction. At the same time, set a stop-loss point of 10 points, so that even if the transaction fails, you will only lose 2% of the total funds. Even if you make mistakes five times in a row, the total loss is only 10%.

2. Follow the market trend: In trading, be sure to follow the general trend of the market. Small rebounds in a downward trend are often only short-lived, while small pullbacks in an upward trend may be a good opportunity to buy.

3. Avoid chasing short-term skyrocketing varieties: For currencies that have soared rapidly in the short term, try to avoid participating. These currencies tend to stagnate at high levels and may fall rapidly afterwards.

4. Use MACD indicators to guide transactions: MACD is an effective technical analysis tool. When the DIF line and DEA form a golden cross below the 0 axis and cross the 0 axis upward, it is a steady buy signal; and when MACD forms a dead cross above the 0 axis and starts to run downward, it is a signal to reduce positions or exit.

5. Add positions when you make a profit, and don't cover positions when you lose: During the trading process, only consider adding positions when you make a profit, rather than trying to spread the cost by covering positions when you lose. At the same time, pay close attention to the volume and price indicators. When the price of the currency breaks through at a low level, it is a potential buying opportunity; when there is a high-volume stagnation at a high level, you should exit decisively. Focus on strong currencies in an upward trend.

6. Review the market regularly and adjust strategies flexibly: insist on reviewing transactions every week, review the transaction process, summarize the reasons for success and failure, and adjust trading strategies in time according to market changes.

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