Do foreign exchange trading for several years to explore the general rule of stop loss and profit setting

Eastforexcashback 3Browse 0Comments Collection

In my experience, the setting of the stop loss Eastforexcashback profit, especially the forexcashbackcalculator East forex cashback closely related to the medium and long term operators can cashback forex set a profit, set a moving stop to replace the stop short term, especially ultra-short term should set a profit target profit stop is in principle greater than or equal to the stop loss of double the stop loss, such as a stop loss of 30 cashbackforexbtc, the general situation of the profit should not be less than 30 points then We consider the impact of the spread, I think, take profit should be at least ten times greater than the spread, theoretically, the greater the gap the better, so that you can offset the adverse impact of the platform spread Some newcomers may feel that the spread does not matter, such as the euro is about 2 points This is a big mistake unless you are a long term player to me, for example, at present, my operation volume to 10,000, rough statistics, the least operation has More than 100,000 times each time to pay 2 pips, 100,000 times is 200,000 points even if the value of a point calculated according to $ 0.1, 200,000 points, which is equal to I paid $ 20,000 in spread fees! How much do you think you have paid? I think you may be shocked so, as a long-term trader, must consider how to reduce transaction costs then a basic rule is that the minimum stop gain is equal to 10 times the spread and based on the rule that the stop gain should be more than double the stop loss, you can conclude that the stop loss must be more than 10 times the spread otherwise, long-term trading, will have extremely adverse consequences for you this consequence is difficult to use technical analysis to compensate for the next talk Practical, assuming that your platform euro spread is 2, then you can easily calculate that your stop-loss settings can not be lower than 20 points, take profit can not be lower than 20 points if you ultra-short-term operation, 10 points on take profit, then it is equal to one-fifth of your profits taken by the platform and when you lose 10 points, it is equal to you have to lose an additional one-fifth This is a very bad stop-loss strategy but in fact, many Newbies slightly profitable want to run away a single or two does not matter, do more is to the platform to do hard work I use the oanda euro spread is basically about 1.2, so my stop loss is generally in a dozen points, sometimes dozens of points, but basically will not exceed 50 points if you do the pound, the pound spread than the euro to double or so, assuming that your pound spread is 4 points, then your stop loss should be at least 40 points, and should not be the euro as twenty to thirty points If you think that the spread is just two points more, the impact is not much, it is a big mistake stop loss and gain settings and the spread is multiplying relationship, rather than a simple add or subtract relationship spread doubled, stop loss and gain should be doubled rather than the spread of two points, you will add two points to the stop loss Why is gold harder to do than the currency? One of the reasons is that the spread of gold is high do not underestimate the spread of these points in accordance with the principle of multiplication, assuming that your platform gold spread is 5, then your stop loss is at least 50 points, the stop gain is at least 50 points think about it you are not often earn 20 or 30 points on the run? If so, I think you can not long-term profit to this think of a real case, recently received a disciple, her platform spread is very dumb euro actually have 5 points spread, very very difficult to do! I strongly asked her to change the platform to oanda because according to my system, I stop loss is generally about 20 points, which is 5 spreads for her platform, is tantamount to working for the platform another apprentice platform, the euro spread is 1.8, he thinks than my 1.2 just more than 0.6, not much impact I told him, not more than 0.6, but more than my platform 50% of the spread then you The stop-loss and take-profit must be expanded by 50% to be cost-effective, you have to take a lot of extra risk and for my small spreads, if I do ultra-short, according to the principle of multiplication, 12 points of profit space I can catch, the opportunity is much more and 1.8 spreads, at least 18 points of profit space to do the market, you can have greater certainty can eat 18 points of opportunity is far less than 12 points if your point spreads are too high. If your spread is too high, hurry up and change it The impact of the spread is really great My spread is small, I can change hands within 20 points or even within 10 points of the space flexibility to enter and exit, the large spread is difficult to do The above-mentioned spread and stop-loss ratio relationship applies to the general situation in special circumstances, I will use 10 points stop loss, or even 5 points stop loss If you are a long term player, a year trading once or twice a year kind, please ignore the above words But as far as I know, foreign exchange is not very suitable for the long term because of the strong repetitive nature of foreign exchange in a longer period of time, it is not very volatile space like the yen that kind of big unilateral opportunity is not much Finally, a little advice to newcomers, given that the spread of gold is much higher than the foreign exchange, therefore, stop loss and take profit is very difficult to grasp, it is strongly recommended that newcomers from the lowest spread of the euro to start do not know newcomers have not thought about, assuming that do not consider the spread of Impact, as long as we lock the stop loss and take profit for the 1:1 relationship, such as profit 100 points on the go, loss 100 points also go then even if you do single with your eyes closed, as long as the sample size is large enough, you are basically flat, but the actual situation is that ninety percent of the people in the loss of money Why? One is that you cut off the profits, let the losses run two is that you heavy operation, resulting in your single volume can not be large enough to let the probability play a role three is that you do not know how to dissipate the adverse effects of the spread why the medium and long term losers are relatively small? The reason is that the adverse effects of spreads are basically ignored for them even if they open a single with their eyes closed, a few years later, they also have a fifty percent chance of profit Speaking of which, Ill add two more sentences about ultra-short term Why do many people say ultra-short term is too difficult? First of all, the ultra-short term I admit that it is indeed difficult, but more difficult is a single a day kind, because that the timing and accuracy requirements are too high, the requirements for the stop-loss and take-profit settings are also very high most people think that the ultra-short term is difficult, in fact, his platform is too high platform spread, if the 2-point spread do not expect to do ultra-short term, because you must capture no less than 20 points of profit space, such an opportunity, a day rarely spreads in the best in about 1 point, so that ten or so points of profit space can also be captured, so as to do ultra-short two is the slow speed of the platform transaction ultra-short requires instantaneous transactions, newcomers are used to mt4 kind of speed even if it, if you use mt4 operation ultra-short, Ill laugh three is the convenience of the platform operation to be very high this mt4 or not such as I use oandas java platform can be a key instant deal, just click the left mouse button, you can instantly deal with the specified unit, and by default automatically with a stop loss, stop loss and moving stop to increase or decrease positions or even backhand is a key to get it done, instant deal if you need to press two or three keys to deal, after the deal, you have to set up a handful of stop loss and profit or something, then you better not engage in ultra-short four is to have a strong execution, without hesitation The implementation of the predetermined plan can not hesitate to do a single sometimes like a nervous reflex, not allowing you to think again and again Therefore, you must develop a good and detailed strategy and plan, and then once the emergence of the rapid implementation of sometimes I operate more than two accounts at the same time, afraid of being too busy to take a pending single transaction forex state nbsp; >  Forex Academy the fragrance and know the green clothes 

Articles related to this article