Foreign exchange investment common stop-loss settings

2023/2/24 22:27:07  read(2)

In fact, the usual stop- cashback forex position best forex copy trad howtocopyforextradingg set up in no more than three ways: 1. In the important support or resistance level was broken after the stop loss This is the most commonly used in the actual operation mode According to my observations, investors in this position stop loss out of the proportion is very high But, careful analysis of foreign exchange trends in domestic and foreign charts can be found in the foreign exchange market, there is often resistance or support position After the breakthrough of the price trend reversal pattern Important resistance or support positions are the following: the price of a longer period of time to stay in the dense trading area; a longer range of price highs or lows; trend lines, the golden mean, or average system, etc. provide the location of these positions lack of reliability for the following main reasons: (1) large speculative funds can predict the approximate stop-loss price of market investors they even (1) Large speculative funds can predict the approximate stop-loss price of market investors, they even deliberately put together a large number of transactions at certain price levels, forming the illusion of strong support or resistance, and then by virtue of capital advantage to break through these positions, after the stop-loss plate reverse operation to profit (2) trend lines, averaging systems, the golden mean, etc. provide support or resistance position itself is more subjective, lacking a trustworthy basis and foundation, the accuracy rate is very low, in these positions to set up a stop-loss point is especially like a neck to die  The absolute amount of loss reached after the stop loss At present, in foreign countries, this is the more game traders use the stop-loss method The main point of its operation is to set up the maximum amount of capital loss of the entry part, generally 5%-20% of the funds occupied, can also be the absolute amount of funds occupied, such as 100 yuan per hand once the loss amount, no matter what price level immediately stop loss from the field Use this stop-loss method, must Note the following two points: (1) different varieties or different operating time periods to use different stop-loss amount (2) the establishment of the stop-loss amount must be verified in the market probability The advantages of this stop-loss method is obvious: (1) highlight the principle of capital management foreign experience shows that the excellent trader is not how to analyze the market but how to manage the money (2) has the advantage of probability, the longer the operation (3) stop-loss position away from ordinary investors, to prevent the first stop-loss position set by the market risk using this stop-loss method, you need to do a lot of statistical and analytical work to determine the operating strategy, to find the best stop-loss amount suitable for their own operating style 3. In fact, some of the best foreign traders also often use this type of method The specific use of the method is: when your position part of the loss, as long as you can still afford, you can keep your part, otherwise immediately stop loss out of the market, even if you are just established positions. This method is suitable for same-day short term network trading and for experienced traders, while novice traders are often oscillated out of the market at high and low levels. The main rationale for using this method is that if you feel uncomfortable after establishing a position, it is often because there is some kind of appearance in the market that you did not expect, although it may be because of short term trading you do not have time to analyze too much information, or it may 4. There are several ways to set a stop loss: 1) Short-term intraday entry set stop loss: This space should be controlled within 50 points is better, because most of the currency intraday volatility is only about 100 points, we can accept the error is within 50 points, there is a larger error has indicated a greater error on the 2, medium-term set stop-loss: stop-loss space can be appropriately enlarged, the point is also critical, not arbitrarily set, if you touch the stop-loss at least to show that the rhythm of the judgment has been a mistake, the ideal stop-loss price is after the fall can indicate the direction of the problem general reference space in about 100 points 3, follow the market to enhance the stop-loss: to rise to do More as an example, speculation in foreign exchange with the rise in the market, and gradually improve the stop loss, improve the way is: short term, choose the hourly chart rise in the process of significant retracement of the low near as a stop-loss level; if the medium-term upside view is good, stop loss can not follow too tight, can choose the daily chart of significant retracement of the low below as a reference stop-loss level