Forex Rapid RebateForex Rapid Rebate

How to deal with the two major problems in the trading process The retraction and profit single into loss single

recently some users reflect their own chase high cotton or vegetable oil set, but also some users rebateforex the early access to a large amount of floating profit results retraction or even profit single into loss single, in short, recently are in trouble among th Forex Rapid Rebate is the futures market, a moment is the long carnival, a moment is the short carnival, never a one-man show! Today I want to talk briefly about these two topics: First, how to deal with the problem of retraction in trading? Second, how to avoid making their own profit single into a loss single? How to deal with the retracement problem in the trading process? There are usually two approaches in doing a large trend market, one is to establish a target position ForexRapidRebate then ignore the fluctuations during the period and endure the retracement; the other is to establish a target position and then take a rolling operation method, high throw and low absorption, keeping the position unchanged to adjust their position cost. However, the vast majority of traders are not strong enough to endure the retracement during the period, and they prefer to take the second way, after establishing a target position, to take the rolling method of operation, but very often, due to various reasons, traders often can not cover after reducing their positions, and as a result, when the market When the market takes off again, their positions become smaller compared to the above methods, each has its own advantages and disadvantages, right If the first method is clumsy, then the second method is tricky! Although I seldom mention technical analysis in my articles, trickery still requires a certain amount of technology as an aid for traders interested in the second method, here I briefly introduce a method of determining market turns Divergence Technical Divergence is simply a way to determine the likelihood of a trend turn by comparing rebateforexbroker action with the trend indicator trend What indicator is used is not important. It does not matter, you can use Macd, RSI, KD, CCI indicators, etc. It is a leading indicator, is the price trend turn in advance of the prediction of its theoretical basis is that if the price highs continue to raise, oscillators should also continue to go higher; on the contrary, if the price lows continue to go lower, then the oscillators should also continue to fall if the price and oscillators appear inconsistent trend, and If the price and the indicator trend rebateforexfee, then this situation is called divergence divergence four types of divergence (too lazy to draw a diagram, directly code it): conventional top divergence: If the price formed a higher high, but the oscillator formed a lower high, this situation is the conventional top divergence this situation usually occurs in the uptrend, in the price of the second time after a new high, if the oscillator high continued to go lower, then the price is likely to turn down. Then the price is likely to turn down Conventional Bottom Divergence: If the price low keeps going lower, but the oscillator low keeps going higher, this situation is Conventional Bottom Divergence This situation usually occurs in a downtrend silent, after the second bottom is formed, if the oscillator fails to form a new low, then the price is likely to rise Hidden Top Divergence: When the price forms a lower high, but the oscillator When the price forms a higher high, but the oscillator forms a higher high, this is a hidden top divergence This usually happens in a downtrend, where the price does not make a new high during the rally, but the corresponding indicator makes a new high, in which case the price is likely to continue to fall Hidden bottom divergence: When the price forms a higher low, but the oscillator forms a lower low, this is a hidden bottom divergence This usually happens in an uptrend, where the price does not make a new high during the rally, but the corresponding indicator makes a new high Occurred in the uptrend, the price of the retracement of the rising process does not create a new low, while the corresponding indicators have made a new low, the price in this case is likely to continue to rise The reason for introducing the basic concept of divergence, because before some users said we understand the divergence is inconsistent, so here to introduce my simple understanding of the divergence After introducing the basic concept, and then talk about how to use the divergence technique, here I mainly talk about five issues: First, the confirmation of the divergence problem because the divergence involves a comparison of price and indicators, all indicators lag behind the price, so how to confirm the divergence is a problem, after the price is gone, the confirmation of the divergence needs to start from the indicators here, I personally used to use the crossover of indicators as the method of confirmation of the divergence Second, the principle of departure from the divergence to do more, the first time the top divergence immediately Reduce or close the position to leave; short when the first bottom divergence will immediately reduce or close the position to leave at this time you focus on the bag for peace or to reduce retracement, so out is the first, there is a divergence on the run! Third, the entry principle of divergence to do more, at least two bottom divergence before considering half or full entry; short, at least two top divergence before considering half or full entry at this time you focus on entry to participate, security is the first, so at least one more observation! Fourth, the period of the divergence problem above the method I mentioned refers to the divergence are daily K-line chart divergence, of course, different traders can be adjusted according to their own operating cycle, but the smaller the period, the more divergence, I am a low-frequency traders, so the situation within the day usually do not pay much attention to the fifth, the divergence of the exceptions divergence is only a probability situation, not 100% of the For example, the strongest variety of coke in the universe before, the daily apparent divergence, the results of the divergence is not adjusted, but the occurrence of the indicator obtuse, that is, long-term divergence state, this situation is usually the occurrence of a super strong trend so with the divergence to enter this situation is tragic, but the divergence from the field, you can basically ensure that your profits, just earn The less you like to take the wisdom of the traders can try this method, willing to keep clumsy traders can only silently endure, but endure is also a limit, absolutely can not let your profit single into a loss single, the following talk about how to solve this problem how to avoid making their own profit single into a loss single? Many traders may not be clear about what is profit, what is loss is not all profit is profit, and not all loss is loss I understand profit and loss in this way, after I open a position, the market will have a normal fluctuation range, within this range, my profit and loss are not profit and loss, just random fluctuations only correct understanding of profit and loss for example, I am in 15300 established a long cotton, assuming my stop loss at 14300, give it 1000 points of downward fluctuation space, according to the principle of symmetry, I also give it 1000 points of upward fluctuation space, then in my 15300 after building a position, the price of cotton between 14300-15300, I do not consider it a loss of money, between 15300-16300, I also do not consider it make money, only when the price falls below 14300, I think I am losing money, when the price exceeds 16300, I think I am making money this is my understanding of profit and loss, is to give the market a certain range of fluctuations after the profit and loss is the real profit and loss, and many traders do not give the market any room for fluctuations, all the ups and downs are taken as profit and loss to avoid profit orders become loss orders continue above The example of the assumption that I opened more than 15300 cotton, cotton prices rose as expected, breaking through the 16300, that is, the upper limit of the volatility range, all the way up to 17300, then from 16300 to 17300 this part is what I understand the profit of course, the development of the market can not be overnight, there is always a pullback in the process of rising, there is always a rebound in the process of falling, which is very normal, but whether it is a pullback in the process of rising, there is always a rebound. But whether it is up in the process of retracement, or down in the process of rebound always have to have a limit, can not let all the retracement and rebound, otherwise your profit single often easy to become a loss single from 16300 to 17300, you profit 1000 points (actually profit 2000 points), the 1000 points of profit, you give it how much retracement space, determined by yourself, you You can follow the golden mean, 382 points, 500 points, 618 points, but also in accordance with the so-called support level, etc. I believe that the majority of traders are very familiar with these techniques, assuming that you follow the Fibonacci series of methods to give 50% of the retracement space, then when the price retraced 500 points from 17300 to 16800, you can consider reducing or even closing the position The exit, to avoid their own profit single into a loss single, on the surface of your profits retracted 50%, but your actual profits are only retracted 25% Of course, for some professional institutions, may take a multi-species multi-strategy hedge to solve the problem of retraction, for ordinary individual traders, that amount of capital effective, you can hardly do multi-species multi-strategy, only through the ideas and methods to work on. Deviation from the technology is a method, the correct understanding of profit and loss is a way of thinking Author: JerryMa

Related recommendations