Technic

After analyzing the market situation and determining the direction, you can also cooperate with different trading strategies to reduce the risk of entering the market and increase the odds of winning. This article will introduce you to some common trading techniques.

Average buy method

Also known as the average cost method: buying a fixed amount of investment products at a specific interval to avoid the uncertainty caused by market fluctuations, which belongs to the medium and long-term investment method.

For example, a fixed investment of 10,000 yuan per month to buy gold, when the price of gold rises, the amount of gold that can be bought will be less, but when the price of gold falls, more gold can be bought. Investors are hedging to buy too much at high levels, while low levels can increase the number of buys accordingly. Investors also do not have to wait or estimate when the ideal entry price will appear to ensure that they can buy the appropriate amount. The disadvantage of more regular and lazy investment is that it requires longer-term investment and cannot avoid the risk of falling market.

Sectional Entry

It is similar to the average buying method, but it is not a long-term investment as it is, but when the market outlook is good, but the entry price is not well grasped, and the market is entered in stages, generally divided into three bets. Enter the market at a low price stage. The advantage is that although you can't grasp the lowest price to enter the market, you don't have to worry that if you fail to enter the market, you will immediately show a rising trend and you will not be able to get on the car. And when the price is in the market and then retreats, it can also be absorbed at a low level, lowering the average entry cost. The disadvantage is that the funds entering the market are thinned, and the profit will be less than that of a bet that is too low.

Call margin

After the purchase has been made, the price continues to fall, and it can be purchased again at a low level, which will lower the average purchase cost. Different from the average buying method, ditching goods is a strategy that has been caught in the opposite market. The price trend may not be what you expected, and it may also become weaker and weaker, and the price is deep in the mud. Therefore, it is necessary to set a stop loss and exit before ditching the goods. Program. The advantage is that it can lower the average cost of entering the market, and the difficulties can be solved smoothly after the price rebounds, but the disadvantage is that it requires additional capital costs, and it may enter the wrong market, which is the so-called grinding mat in disguise.

Add on

After buying, the price continues to rise, and the profit will be rolled over to continue to invest. Contrary to ditching goods, making money does not leave the market immediately, but continues to roll over the profits. When the trend is unilaterally upward, this method will earn the maximum profit, which is equivalent to double-entry investment, allowing the money to roll over again, but the disadvantage is the harvest period. It will take a long time, and the derived profits need to be used for investment, and it is also possible that the profits will be consumed when the technology is withdrawn.

Pyramid Entry

The evolution board that enters the market in stages can enter the market immediately for fear of failing to get on the market during the rapid uptrend, but when more funds are allocated for the second and third bets, for example, the funds are divided into six parts. , buy 1/6 in the first bet, 1/3 in the second bet, and buy the remaining 1/2 in the third bet, the lower the price, the higher the proportion of investment, the advantage is that you can enter the market and get on the car. , but in case of a correction in market conditions, there will be more funds to buy at low levels. This strategy is mainly applied in the rapidly rising market conditions, high chasing but to balance the risk of entering the market, the bad is the same as entering the market in stages, the remaining funds may not be able to enter the market, and profits cannot be maximized

DAY TRADE

It may be one of the most popular ways for retail investors to turn into full-time speculators, but it is not an entry strategy, but full-time speculators. Treat it as daily income, and secondly, to avoid capital being trapped in the market, and avoid the risk of systemic and short-term fluctuations in the market, such as exchange closures, adverse market risks caused by major unexpected news, etc.

Profit Taking

Also known as arbitrage, it refers to the profits purchased by investors through two or more places in different regions due to the difference in interest rate or face value. Exist for a short time. For example, the exchange rate of EUR/USD is 1:1, the price of gold/USD is USD1000/OZ, and the price of gold/EUR is EURO1001/OZ, then you can buy 1OZ gold for 1000USD, then use 1OZ gold to buy 1001EURO, and finally Convert 1001EURO to 1001USD, deduct the cost of 1000USD when you initially bought gold, and your profit is 1USD.

This set of interest transactions may occur every second in the world, but generally the profits are not large, and when it is found to be profitable, the bank's inventory has continued to carry out interest-carrying transactions between the two places, so that the price difference is gradually reduced. Trading costs and handling fees are private, and profit margins will be lost in a short period of time, making it difficult for retail investors to access spread trading. However, with the advancement of technology, Bufen Bank's internal market price appears on the trading platform of the terminal client, and the carry trade has the opportunity to appear in the hands of retail investors.

Hedge /Lock up

Hedging generally refers to trading in the opposite direction of the futures and spot markets for the purpose of locking in profits. For example, farmers can harvest crops in autumn and sell them in the market. However, farmers can also agree with traders in spring to use the current or The agreed future price is settled, and the amount of the product he is expected to hold is sold first to lock in his profit. No matter whether the price rises or falls in autumn, the farmer can still get his income according to the content of the agreement.

If the hedging of buying and selling gold on the platform is generally called lock-up, for example, when the price of gold rises at $2,000, but when the price of gold falls below $1,900, you are afraid that the loss will continue to fall, and some investors will choose to buy and fall again at 1,900. , the risk will always be locked in the floating loss of $100 (2000-1900). After locking the position, your equity will not change. For example, if the price falls to 1800, the buy order of $2000 will appear 200 You lose $1900, but you make a $100 profit on a $1900 sell order, and your net loss is still $100. Conversely, if the price of gold rises by $2,500, then your $2,000 buy order will have a $500 profit, but your $1,900 sell order will have a loss of $600, and the two orders combined will still have a loss of $100. Locking the position on the platform is of little significance to the position. It is only because the investor's psychology will be better, and there is no need to immediately close the losing order and settle it, but in essence, there is no way to change the losing order.