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Stop-loss know-how

Stop- cashback forex forex rebate club an important means of protect cashbackforexexnessg yourself in foreign exchange trading, like the brakes in a car, encounter unexpected situations good brakes, in order to ensure the safety of the ultimate purpose of stop-loss is to preserve the strength, improve capital utilization and efficiency, to avoid small mistakes into big mistakes, or even lead to total destruction stop-loss can not avoid the risk, but can avoid being a greater risk of accidents how to set the stop-loss level? There are the following methods for reference: balance point stop-loss method: after the establishment of the original stop-loss position, the original stop-loss position can be located at a distance of 5%-8% from the opening price of the position after the purchase of the exchange rate rose, then the stop loss will be di forexrebateclublaced to the opening price, which is your break-even position, that is, the balance point stop-loss position Accordingly, investors can effectively establish a zero-risk system, you can cash out at any time part of the profit or all Profit The balance point stop-loss system is well established, the next purpose is to cash out to close positions cash out to close positions with a very strong technical, but no matter what closing techniques, with the rise in the exchange rate must be adjusted accordingly to the stop-loss position in simple terms, such as investors in the 1.5000 buy, the original stop-loss level set up in 1.4850 yuan, buy after the exchange rate if all the way down, can be in 1.4850 stop loss out; if After buying the exchange rate rose, the balance stop loss in the vicinity of 1.5000, foreign exchange fell below to clear out; If the price continues to rise after buying, you can immediately adjust the stop loss level such as the exchange rate rose to 1.5100 yuan, you can adjust the stop loss level to 1.5080 yuan, the price rose to 1.5150 yuan, the stop loss level also rose to 1.5130 yuan Time stop loss method: people generally pay attention to the space of the stop loss, and not Consider the time factor as long as the price falls to a certain price set in advance, then cut the position out, which is the space stop-loss space stop-loss method is the advantage of waiting for the big market through the sacrifice of time, the disadvantage is that after a long wait often have to stop, both delayed time and loss of money for this reason, the need to introduce the concept of time stop-loss time stop-loss is based on the trading cycle and the design of the stop-loss technique. For example, if we expect a currency trading cycle of 5 days, after buying the buy price of a line hovering more than 5 days, then the next day should be firmly out of the position from the spatial stop view price may not have arrived at the stop position, but the holding time has crossed the time limit, in order not to expand the loss of time, it may be worth getting out first Technical stop method: set a stop-loss order at the key technical level, you can avoid the loss of Further expansion of the technical stop-loss method does not have a fixed pattern in general, the use of technical stop-loss method, is nothing more than a small loss to bet on the big gain of its main indicators are: 1, important averages were broken; 2, the trend line of the tangent line was broken; 3, head and shoulders, double top or round top and other head patterns of the neckline level was broken; 4, the lower rail of the uptrend channel was broken; 5, the gap was broken near the For example, the lower rail in the uptrend channel After buying, wait for the end of the uptrend and then close the position, and set the stop-loss level near an important moving line. The necessity of volatility and unpredictability is the most fundamental characteristics of the market, which is the basis for the existence of the market, is also the reason for the risk of trading, which is an immutable feature of trading in the never certainty, all the analysis and prediction is only a possibility, according to this possibility and the transaction is naturally uncertain, uncertain behavior must have measures to control the expansion of its risk, stop loss on The market uncertainty creates the necessity and importance of the existence of stop-loss successful investors may have their own different ways of trading, but stop-loss is a common feature to ensure their success world investment guru Soros said, the investment itself is not risky, out-of-control investment Learn to stop loss, never fall in love with a loss stop loss is far more important than profit, because at all times capital preservation is the first, profit is the second, the establishment of a reasonable stop-loss principle is quite effective, the core of the principle of prudent stop-loss is not to let losses continue to expand

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