Know stop loss in order to step in the foreign exchange market

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Editors Note: As a foreign exchange Eastforexcashbackvestor, we are facing a huge money forexcashbackcalculator that does not transfer for our will, the ups and downs in the foreign exchange market not only lurk huge profit space, there East forex cashback also the risk of making you lose your money need to be clear that this market there will always be opportunities, but once the money is lost, you will lose the ability to find opportunities again, therefore, in order to avoid Risk, set a stop cashback forex is not only very necessary, but also very important Introduction: stop loss is a learned Stop loss is not a cut, cut is a passive, last resort practice in the foreign exchange market, as long as participation in the investment market, it is necessary to have a stop loss...  Stop Loss Flexibility Is there a universally acceptable stop loss level? Although various books have introduced many methods, but the actual results are not as satisfactory as the key is to use different methods, to deal with different markets, in different states of profit and loss, should use a flexible, different stop-loss level Using different methods of operation super-short is concerned about accumulating small into many, because a profit requirements are not high, so the stop-loss level is also set quite strict if you make an average gain of 3%, then The maximum degree of loss is 3%, otherwise the speed of capital shrinkage is certainly faster than the growth rate of the short term to make the key is to find the popular sector of the leading stocks, short-term profits according to the leading stocks retracement of the study, generally can be a high level of 6-10% as a stop-loss level more than this range, indicating that the nature of the market may have changed, the need to get out of the market to avoid doing medium-term holdings longer, the stock price fluctuations are greater In response to different market basic principles, in a strong market, the stop-loss level should be relatively narrow, the implementation of the upper limit; balanced market, the implementation of the middle limit; weak market, the implementation of the lower limit for example, to do short term, in the range of 6-10%, the strong market, choose 6% as a stop-loss level because the strong market in the strong stocks, especially the popular sector of the leading stocks, retracement of more than 6% of the situation is relatively rare In a balanced market, choose 8% as a stop-loss level while in a weak market, choose 10% as a stop-loss level Weak markets generally should not buy shares, but weak markets can also participate in the emergence of obvious hot spots due to the weak market, the magnitude of the retracement of individual stocks will be larger, the stop-loss level is too narrow, which may lead to frequent stops In different profit and loss state stop-loss is intended to reduce losses, to preserve profits. Therefore, the stop-loss level must be set around the market price and profit and loss state reasonable adjustment if the entry day to play a draw, then the cost of how much to fall as a stop-loss level if a field in a profitable state, then immediately raise the stop-loss level, the highest price of the day to fall to how much as a stop-loss level later, as the stock price rises, gradually increase the stop-loss price so that you can ensure that losses are minimized, maximize profits In the risky and unpredictable securities market to do step by step to win the situation Stop-loss method 1, fixed stop-loss method This is the simplest stop-loss method, it refers to the amount of loss set to a fixed proportion, once the loss is greater than the proportion of the timely closure of positions It is generally applicable to two types of investors: First, just entered the market investors; Second, the risk of larger markets (such as futures markets) in the investors The mandatory role of the fixed stop-loss is more obvious The proportion of the fixed stop loss is composed of two data: Third, the maximum loss that investors can afford to lose this proportion of investors mindset, economic capacity and also with the investors profit expectations 2, technical stop-loss method The combination of stop-loss settings and technical analysis, in addition to the random fluctuations in the market, after the key The technical level set stop-loss single, so as to avoid further expansion of losses in general the use of technical stop-loss method, nothing is to small losses betting on big gains through the analysis of the running pattern of the exchange rate, once the exchange rate is found to be broken, it is resolutely stop-loss in practice investors in the stop-loss but also pay attention to the flying knife in the air not to reach out to pick up, after the establishment of the downtrend in the exchange rate to hold on to the money bag, in the downtrend out to grab the rebound, as Knife mouth licking blood, the fire to take the copper, especially the amount of small yin and Yang staggered fall, so that investors often produce the illusion of stop loss, thus wrong answer early stop loss out of the timing Trend tangent stop loss method: including the exchange rate effectively fell below the tangent line of the trend line; the exchange rate effectively broke the Gann angle line 1 x 1 or 2 x 1 line; the exchange rate effectively fell below the lower rail of the ascending channel, etc. Morphological stop loss method: including the exchange rate broke the head and shoulders top, M head, the Round arc top and other head patterns of the neckline level; currency prices appear down jump breakthrough gap and so on K-line stop-loss method: including the emergence of two yin sandwich a yang, yin after two yang yin short cannon, or a yin break three line head guillotine, as well as the emergence of twilight star, through the head broken foot, shooting star, double flying crow, three crows hanging treetops and other typical see the top of the K-line combination, etc. Chip stop-loss method: chip turnover dense area on the stock price will produce a direct Support and resistance role, a solid bottom is broken, often by the original support area into a resistance area according to the chip turnover dense area set stop-loss level, once the level is broken immediately stop-loss out Stop-loss price setting need to pay attention to the following factors: First, to focus on the general trend, in the technical graphics to find the previous major hurdles or recreate the new high (new low), or the market has been more than once confirmed difficult to break Second, the technical analysis of the main analysis of price levels, technical indicators are usually used by professional traders and professional traders, these prices also need to focus on; Third, the government or central bank officials have stressed the price level; Fourth, the most important point, to continue to summarize and accumulate from the daily operation, to find a suitable stop-loss method is the key to their own situation

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