If in the process of foreign exchange trading, traders rely on intuition most of the time without resorting to fixed methods, then even if the profit is temporary, there is no way to maintain stable profits, then what should be done in foreign exchange trading? To avoid risks?

Measure transactions based on the amount of your foreign exchange trading account, and be sure not to over-trade. Generally speaking, the risk of each transaction should not exceed 10% of the account funds, so that risk control can be effectively carried out. It is very unwise to conduct a large number of transactions at a time, which is very easy to cause out of control losses.

When conducting foreign exchange transactions, a tolerable loss range should be established, and stop-loss transactions should be carried out in time, so that there will be no huge losses. The range of losses should be based on the situation of the account funds. If you stop the loss, don't feel sorry, because you have jumped out of the risk that the market will continue to deteriorate and the loss will expand indefinitely.

The smaller the amount in the foreign exchange trading account, the greater the risk of the transaction, so we must avoid letting the trading account only have a fluctuation level of 50 points. Such an account amount is not allowed to make any mistakes, but even if it is experienced The foreign exchange trading circle may also have judgment errors.

The biggest impact of foreign exchange traders is their own emotions: greed, impatience, out of control, unprepared, over-self, etc., which can easily lead to ignoring market trends and leading to wrong trading decisions. You can't simply trade for the sake of not trading for a long time or being boring. This is a transaction without a plan and strategy.

It is important to remember the rules that have always been applied in the foreign exchange market: once the loss must be terminated as soon as possible, the profit must be persisted as much as possible. Another important rule is not to allow losses to occur where profits have already been made. Faced with a sudden reversal of the market, instead of closing positions without gains, don’t let profitable positions become losses.

In the face of losses in foreign exchange trading, you must remember that you should not rush to open a new reverse position to turn around. Doing so will only make the situation worse. Only if you let my original prediction and decision are completely wrong, you can close the losing position as soon as possible and open the opposite position. Don't play the guessing game with market changes, it is better to miss a trading opportunity than to make a loss.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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