Home Foreign exchange investors should look at the right stop loss

Foreign exchange investors should look at the right stop loss

In investment cashbackforexbroker speculation, the stop- forexrebateclub point of view forex rebate club recognized as a necessary effort and principle, no stop-loss trading is a dangerous transaction, in leveraged trading, it is almost related to the life and death of the invested funds, many burst positions do cashback forex lack analysis trading skills, but ultimately ended in failure, live trading is also the case, see the right direction, buy the right direction, and ultimately do not make money or even lose money The problem is not a few where? Stop loss! It can be said cashbackforexexness the success of stop-loss, defeat also stop-loss … … the two most common types of phenomena on stop-loss: all transactions are not set stop-loss, dozens of successful transactions by a failed transaction ruined constant success, so that the traders sense of achievement continues to expand, the sense of risk gradually fade, the position is increasingly large, more and more confident in their own judgment, but often this time the danger is The trader is unaware of the fact that once a failed trade comes, the trader thinks that there is no problem with his judgment and that the reverse development of the market is a temporary phenomenon that will sooner or later turn back, but the result is often the final Another phenomenon is that all trades are set up with a stop loss, but the stop loss is often knocked off, and after the stop loss is triggered, the market turns around and develops in the direction favorable to their original position, and traders are often caught in the vicious circle of opening a position - stop loss - opening another position - stop loss again. The former phenomenon does not need to be commented on, after suffering losses, the natural stop-loss will have a deep understanding, no longer need to be instilled by others, may be their own conscious stop loss The latter phenomenon is quite intriguing, and is the topic I want to discuss with you here I give an example: if you take out life insurance, the insurance company for the premiums charged is not the same? The premiums for newborns are higher than those for children, and from childhood to adulthood, the premiums start to increase in a nearly straight line from low to high, but the slope is not too big; when you enter old age, the premiums will increase rapidly in a curved way Why is that? Because, the mortality rate is different for different age groups, that is, the mortality rate of newborns is greater than that of children and teenagers, so, although the age is small, the premium will be higher than that of children and teenagers, and the mortality rate of young adults is lower than that of newborns, so, although they are older than newborns, the premium is lower than that of newborns. The insurance companys rate setting is not based on age, but on mortality, which is based on the payout rate. What is the payout rate? It is the probability of a payout. Note that the key concept of probability is introduced here. The size of the stop loss is set as if the rate is set, and probability must be introduced. On the premise of probability, it is easy to understand why a stop loss of 10 points is not necessarily safer than a stop loss of 80 points, 10 points seems to be a small loss, but the probability of occurrence is too large, almost 90%. Please ask, which one of you dare to say that the probability of my 10-point stop loss triggering is only 50%! If there is such a brave man, I am willing to bet again and again that the loss of 80 points looks big, but the probability of occurrence is only 10%, which one is cost-effective?

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