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Foreign exchange investment how to set a stop-loss position

East forex cashback the cashback forex exchange market, the establ cashbackforexbtchment of stop- Eastforexcashback is very important to speculate 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 but, in practice, foreign exchange investors are often set up because of 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. Stop loss after the breakthrough This is the most commonly used mode of operation in the real world According to my observations, 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 will often be resistance or support position is broken after the price trend reversal pattern Important resistance or support position 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 lows; trend lines, the golden mean, or average system, etc. provide the location of these positions lack of reliability for the following main reasons: (1) large speculative funds can predict the market investors approximate stop-loss price performance and even deliberately in certain price levels a large number of aggregated transactions, forming the illusion of strong support or resistance, and then by virtue of capital advantage to break through these positions, in the stop-loss (2) trend lines, averaging system, the golden mean, etc. to provide support or resistance position itself has a greater subjectivity, lack of trustworthy basis and foundation, the accuracy 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 reaching the degree of stop loss at present, in foreign countries this is more game trader to use the stop-loss method its operating point is, set up Enter the site of the maximum loss of funds, generally 5%-20% of the funds occupied, can also be the absolute amount of funds occupied, such as 100 yuan per hand a once the loss amount, no matter what price level immediately stop loss from the field using 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 The advantages of this stop-loss method are obvious: (1) highlights the principle of capital management foreign experience shows that good traders are not how to analyze the market but 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 The market risk brought about by the setting of the location of the use of this stop-loss method, you 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.self-tolerance limit reached after the stop-loss this type of stop-loss method is often used by beginners the authors experience is that the use of this stop-loss method in short term operations to improve the rate of return or helpful in fact, foreign Some excellent foreign exchange trader also often use this kind of way specific use method is: when your position parts appear loss, as long as you can still afford, you can hold your parts, otherwise immediately stop loss out of the field, even if you are just established positions the author believes that this method is suitable for same-day short term electronic trading, but also suitable for the market has a lot of experience in the trader, while the newcomer in the use of high and low levels often The main basis for using this approach is that when you establish a position, if you feel very uncomfortable, it is often because the market appeared in some kind of appearance in your unexpected, although it may be because of short-term trading you can not analyze too much information, may be due to other reasons and you temporarily do not know, but the long-term trading makes you feel the risk of the market, then you should immediately leave the market Watch and wait