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Stop-loss method is revealed

Stop- cashback forex forex rebate club also called "cut", is when an cashbackforexexnessvestment loss reaches a predetermined amount, timely cut out of the position to avoid the formation of a larger loss whose purpose is to limit losses to a smaller range when investment mistakes stop-loss method there are three main: fixed stop-loss method, technical stop-loss method and unconditional stop-loss method In addition, the foreign exchange website for you to explain in detail the stop-loss method 1, the fixed stop-loss method This is the simplest stop-loss method, it refers to the loss amount set to a fixed proportion, once the loss is greater than the proportion in time to close the position It is generally applicable to two types of foreign exchange investors: one is just entering the forexrebateclub investors; two is the risk of the larger market (such as the futures market) in the investor fixed stop-loss mandatory role is more obvious, the investor No need to rely excessively on the judgment of the market Stop-loss ratio is the key to the fixed stop loss The proportion of the fixed stop loss consists of two data: one is the maximum loss that the investor can afford to lose this ratio varies depending on the investors mentality, financial capacity and also with the investors profit expectations Two is the random fluctuations in the trading species This refers to the absence of external factors, the market trading group behavior resulting in Price disorderly fluctuations fixed stop-loss ratio is set in these two data to find a balance point This is a dynamic process, investors should be based on experience to set this ratio Once the stop-loss ratio is set, investors can avoid being unnecessary random fluctuations shock out 2, technical stop-loss method More complex is the technical stop-loss method It is the combination of stop-loss settings and technical analysis, after eliminating the random fluctuations in the market In the key technical positions set stop-loss single, so as to avoid further expansion of losses This method requires investors to have strong technical analysis and self-control technical stop-loss method compared to the previous requirements of investors a little higher, it is difficult to find a fixed pattern in general, the use of technical stop-loss method, is nothing more than a small loss betting on big gains For example, after buying in the lower rail of the uptrend, speculators wait for the uptrend For example, after buying at the lower rail of the uptrend channel, the speculator waits for the end of the uptrend before closing the position, and the stop loss is set near the relatively reliable average moving line In the case of Shanghai, the broad market index upward, the 5-day average can maintain the short term trend, the 20-day or 30-day average will maintain the medium and long term trend Once the uptrend begins, you can intervene at the 5-day average and set the stop loss near the 20-day average, you can enjoy most of the profits brought by the stage upward market, but also when the head is formed In the early stage of the rising market, the 5-day SMA and 20-day SMA is very small, even if the wrong market, stop loss near the 20-day SMA, the loss will not be too big Again, the foreign exchange market into the consolidation phase (plate bureau), there is usually a box or convergence triangle pattern, the price and the medium-term average (generally 10-20 days) deviation rate gradually reduced at this time investors can be in the technical The maximum deviation rate at the intervention, and the stop-loss level is set at the maximum deviation rate of the Board so that you can low into the high, get the difference once the price of the medium-term average deviation rate re-enlargement, it means that the Board has ended at this time, if the price turns into a downtrend, investors should leave the field decisively Board is relative to the unilateral city of the Board at the beginning, the market is unstable, the greater the shock, traders can boldly intervene in the late Board should be the stop loss 3, the unconditional stop-loss method regardless of cost, the stop-loss is called unconditional stop-loss when the market fundamentals have taken a fundamental turn, investors should abandon any illusions, regardless of cost to kill out, in order to save strength, choose the opportunity to fight again Fundamental changes are often difficult to reverse the deterioration of the fundamentals, investors should be decisive, cut positions out of the game To sum up, stop-loss is The necessary means to control risk, how to use the stop-loss tool, foreign exchange investors should have their own style in trading, the investors overall position in the market, the trend of the grasp is very important in the high price circle with more stop-loss, in the low price circle less or not, in the medium price circle should depend on the market movement trend to follow the trend, with a good stop-loss level is the only way for investors to win!

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