In contract trading, why can some people stay in it for a long time, while others can't survive one episode? This is about the rules in foreign exchange trading. Generally speaking, since they are rules, it is best to abide by them. There are rules. It’s just a circle, but everyone has their own trading rules, but you must abide by these three iron rules.

1: Always light warehouse

A heavy position will lead to death. It’s not that you will die if you take a heavy position once, but you will definitely die if you take a heavy position frequently. The reason is very simple. If you have been trading for a long time, you will inevitably encounter some extreme situations. If you have an extreme market situation or unexpected event, you may lose more than half of your principal in a heavy position, or even be liquidated.

2: Strict stop loss

When placing an order, you must establish a stop loss point. When you reach the stop loss position, you must stop loss unconditionally. Large losses are either caused by heavy positions or failure to stop losses decisively.

It often happens that when I place an order, I feel confident. However, I start to lose money after placing the order, and then the losses increase. When I reach the stop loss point, I feel that the loss is too much and I am unwilling to accept it, so I give up. damage. As a result, losses grew. From a small loss to a big loss.

It is possible to get rid of the trap by carrying it to death, but if you don't get rid of the trap, you will be dead. Loss is a part of trading. If you are often unwilling to stop losses, then your position will be liquidated as soon as you encounter a market that will never come back.

3: Follow the trend (go with the big trend and go against the small trend)

If someone is willing to buy at a higher price, the currency market will rise, and if someone is willing to sell at a lower price, it will fall. After a big trend is formed, it will always reach an extremely unreasonable price. After a big trend is established, it always moves towards an extremely unreasonable price. A commodity's rising trend often starts slowly, fluctuates, then starts to rise crazily, and finally rises extremely crazily. The same goes for when it goes down.