Foreign exchange market stop-loss method

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In the foreign exchange Eastforexcashback, the establ East forex cashbackhment of stop- cashback forex is very important cashbackforexbtcvestment in foreign exchange has three most important elements: the first is the stop loss, the second is the stop loss, the third or stop-loss However, in practice, investors are often set up because the stop-loss is not scientific enough to cause huge losses In fact, the usual stop-loss position is set up in no more than three ways: 1.  This is the most commonly used mode of operation in the real world investors in this position stop loss out of the proportion is very high However, careful analysis of foreign exchange trends in domestic and foreign charts can be found in the foreign exchange market, there are often resistance or support positions are broken after 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 low; trend line, golden mean, or averaging system, and so on to provide the location of these positions lack of * the main reason are: (1) large speculative funds can predict the approximate stop-loss price of market investors they even deliberately at certain prices a large number of transactions, 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 to reverse the operation to profit (2) ) trend lines, averaging system, the golden mean, etc. provide support or resistance position itself is more subjective, lack of trustworthy basis and foundation, the accuracy rate is very low, in these positions to set up a stop-loss point is especially like neck to die 2. absolute amount of loss after the degree of stop-loss At present, in foreign countries this is more excellent trader to use the stop-loss method The main point of its operation is that the establishment of the maximum loss of funds into the field parts The main point of its operation is to set the maximum loss of funds in the entry area, generally 5%-20% of the funds occupied, can also be the absolute amount of funds occupied, such as 100 yuan per lot once the loss amount is reached, regardless of the price immediately stop loss from the field Use of this stop-loss method, must pay attention to 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 in the market to get the probability of The advantages of this stop-loss method are obvious: (1) highlights the principle of capital management foreign experience shows that good traders do not lie in how to analyze the market but in how to manage the money (2) has the advantage of probability, the longer the operating time the more obvious the advantage (3) stop-loss position away from ordinary investors, to prevent the first stop-loss position set by the market risk When using this stop-loss method, the 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. is: when your position part of the loss, as long as you can still afford, you can hold your part, otherwise immediately stop loss out of the market, even if you are just established positions The author believes that this method is suitable for same-day short term trading, but also suitable for the market has a lot of experience in the trader, while newcomers in the use of the high and low levels are often oscillating out of the use of this approach is based mainly on the fact that when you establish a position If you feel very uncomfortable, it is often because there is some kind of appearance in the market that you did not expect, although you may not have time to analyze too much information because of short-term trading, or for other reasons that you do not know for the time being, but long-term trading makes you feel the risk of the market, then you should immediately leave the market to watch

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