How to Use Forex Locked Positions and Identify Data-Volatility Traps

The hedging function of the trading platform is what most newcomers like to use when their positions are losing money. The hedging function can indeed temporarily stop the expansion of losses, but when it comes to unlocking, the problem arises. Every unlocking is a real act of guessing the bottom and the top. It is determined that the long-term result of the transaction is failure. After locking the position, most traders are influenced by one-way thinking, constantly hoping for the emergence of tops and bottoms, which affects the overall judgment and no longer makes an objective understanding of the market. The correct way to use locking: .

1) When the market trading is light and the range is judged to be volatile, you can place equal amounts of buy and sell orders at any position within the range at the same time. When it is close to the critical point, close the profitable order, set a stop loss on the other order at the same time, and wait for the price to return to the other end of the range.

2) When making a profit, you think that the price has reached the top or bottom, and you want to continue to track the transaction and operate in reverse. In order to facilitate observation and tracking, you intentionally lock the profit part. Once the market reverses, you can make a timely response. Since the situation at that time is profit, you can use the part of the profit that has been made to make new bets, which is easy to do. Make objective judgments, which is the so-called virtuous trading mentality cycle. For the use of correct hedging, you must have certain practical experience and analytical skills, which are not something ordinary novices can master. For novices, unless they have a good teacher to guide them, they must not use them casually. The magic weapon for long-term survival in this market is to abide by trading discipline.

The small means of data traps come from the investment power of the market. There will be big funds in any investment market. These international investment groups use their own resource advantages to obtain hand-to-hand resources more accurately and faster than we ordinary people.

It is difficult for Forex to have the ability of bankers to deliberately attack or increase stocks like stocks, but these powerful investment forces can create many small traps. This kind of trap is called "deception line" in stocks. One method is that in a short period of time before the public obtains the data, investment forces deliberately pull up in the opposite direction, causing ordinary investors to make misjudgments. In the end, fear defeats reason and stops losses. The second method is to deliberately increase the influence of data, leading to over-investment.

The first way to deal with this is that friends who do data, don’t be so anxious, and don’t predict the market in advance before the data comes out, because the actual data is closely related to a country’s national economy, and the variables are too large. Entering the market in advance is tantamount to gambling. It is better to wait for the data to come out and make a clear judgment before operating.

In the second case, we need to focus on the importance of data. If an obviously unimportant or less important data causes excessive market space, then over-investment often occurs. Especially this kind of market trend is opposite to the small trend of the 30-minute chart, which is often a signal of over-investment.