Tip 8: Forex techniques

Is selling in forex markets a bad idea?

Basically, I do not conduct selling.
Ordinarily, one would think that selling and buying together would be doubly attractive. However, in fact that is not the case.
When buying, if investors do not focus on buying they cannot do it well.
It is difficult to switch one’s way of thinking between buying and selling modes.
Since selling cannot be conducted without paying for a swap, it is not particularly useful.
However, one might want to think of selling in cases such as when the market falls dramatically.
In the future, there might be an even greater drop in August.

In future forex trading, leverage of 1:1 to 2.5:1 will be enough

In the past, it was said that leverage should not exceed 5:1. However, today 2.5:1 should be considered the maximum.
Since future price fluctuations are likely to be even greater, leverage of 1:1 may even be a good idea.
While high prices are being pushed up, isn’t it likely that the bottom would drop lower as well?
Investors should use lower levels of leverage when price fluctuations are more severe.

How to take part in forex trading with good timing, by buying at the bottom

One method of investing is to concentrate solely on buying at the bottom.
Under this method, one ordinarily adopts a wait-and-see attitude without trading and then buys at the bottom when the market seems desperate or falling markets make the front page of the news.

I think properly speaking this is the most attractive method of buying.
While I think many amateur investors are making money using this method, in recent forex markets it has come to be thought that foreign exchange is suited to short-term buying and selling. For this reason, the number of investors adopting this method has decreased.
While the same is true for equities, I don’t think equity markets have reached the bottom of their second dip yet.
I think stocks could easily fall below 8000 yen.
I believe they will fall to about one-half their current level.
But I don’t think this will happen right away.

Eight tips for Forex trading in Japan