The stop-loss rule of a master trader
Stop-loss, for foreign forexrebatesbrokers forexbonusrebatevestors, th forexdiscountbrokers word sounds very uncomfortable forex discount brokers not very popular with them and if you are also very averse to this term, then your investment behavior has laid a major hidden danger, like a time bomb, sooner or later to destroy your investment career In fact, stop-loss for a professional investor, is a series of trading procedures An important part of the booking plan, without any emotion, just like playing a video game as natural, in accordance with the designed procedures to carry out the task, to seize the pass, the brave man broke his arm, incomparable natural Due to human natures inherent weaknesses, sometimes unconsciously affect our operation, a big loss, enough to lose the previous 99 times the profit, so strict compliance with the stop-loss discipline will become to ensure that investors in the risky cashback forex The only rule to ensure the survival of the foreign exchange investment stop loss is a basic function of the U.S. investment community has a useful and simple trading rule, called the AlligatorPrinciple all the worlds successful foreign exchange investors before entering the market, are repeatedly trained to understand the degree of this principle This comes from the way the crocodile devour: the more prey tries to struggle, the more the crocodile gains Suppose a crocodile bites your foot; it bites your foot and waits for you to struggle. If you try to free your foot with your arm, its mouth bites both your foot and your arm, and the more you struggle, the deeper you get. In the language of the market, this principle is: when you know youve made a mistake, get out of the market immediately! No more excuses, expectations, reasons or any other action, get out of the market! In fact, whether it is the stock market, foreign exchange market, options trading, its trading skills in this point are similar to survive in the foreign exchange market, sometimes need patience, sometimes need confidence, but patience, confidence does not mean fluke, do not know how to stop loss of investors, is not lost in the fluke psychology? I want to emphasize that stop loss is about science, know the science of stop loss is the fundamental guarantee of stock market victory scientific stop loss can be summarized as: avoid risk, preserve the principal, survival In fact, the nature of the stop loss is not a direct investment loss, the essence is to protect the safety of the principal and pay the insurance premium to the market is the cost of investment in the foreign exchange market must bear this is like you buy a private car, you first have to go for Insurance procedures, and to pay the insurance premium in advance every year, if you pay a premium of 5,000 yuan a year, and your car is safe and sound, you will not regret? Do you think you have suffered a loss? Control risk is the most important guarantee to achieve the goal of a person who just learned to drive, know how to put on the brakes than just know how to step on the accelerator to be more reassuring, in order to learn faster into the road; a person who just learned to ski, know how to control the speed of decline compared to the acceleration of a laissez-faire, life is safer, in order to have the hope of becoming a master of the division before the body dies, long to make the hero tears full of lapels! How is speculation in foreign exchange is not so? How many foreign exchange friends because of poor stop loss has been in a desperate situation! The foreign exchange market is a risk market, a win two flat seven losses is a normal phenomenon in the foreign exchange market, and whether bear or bull market greed and fear of two demons haunting every foreign exchange investors, how to control the risk will become the first subject of every professional investor hundred years, safety first, want to become a winner in the foreign exchange market, can not rely on a moment of the general market to go bull or heavenly good luck, must have the skills and the ability to continue to make profits. Ability, as well as to avoid the risk of bulletproof vest in a word, professionalize themselves, or be wiped out by the foreign exchange market As a professional investor, each operation must draw up a plan, each buy before determining the three price levels, namely: the purchase price, stop gain price and stop loss price If this work is not done, any operation is strictly prohibited! In the early years of surfing in the sea of exchange, both because of the selection of currency pair accurate and continue to reap huge profits of brilliance, and at the same time accompanied by a lack of understanding of risk, poor stop loss and incurred several times the disaster, I constantly wander between heaven and hell, great joy, great sadness, ups and downs, human weaknesses to the greatest extent in the speculation in the foreign exchange and painful, finally realized that the foreign exchange market in the most simple, as everyone knows The simple truth: learn to stop loss and good at stop loss is the basic premise of survival and development in the stock market! After the continuous exploration in the actual battle has now been on the stop-loss theory and techniques, quite insightful at the strong request of the majority of friends, will now write my false multi-dimensional stop-loss rules for the reference of friends A, space displacement stop-loss method: 1, the initial stop-loss method: in the buy shares before the pre-set stop-loss position, for example, at 3% or 5% below the purchase price (short term, medium-term should not exceed 10%) Once the stock price effectively fell below the stop-loss position, then immediately leave the field here said effective fall, generally refers to the closing price 2, capitalization stop-loss method: once the stock price rose rapidly after buying, the initial stop-loss price should be adjusted immediately, the stop-loss price moved up to the capitalization price (purchase price + two-way transaction costs), this method is very suitable for T + 0 operation, T + 1 effect is also good 3, dynamic stop-loss method: once the stock price off the capital preservation stop price continued upward, should continue to push up the position of the stop price, while observing the volume of the plate price relationship if the volume and price relationship is normal, then down a certain percentage set a good stop loss continue to hold, if the volume and price relationship deviation, should be immediately out 4, the trend stop-loss method: to an effective trend line or moving average in the actual combat as a reference coordinate, observe the stock price run, once the stock price effectively fell through Second, the time period stop-loss method: before we buy foreign exchange, to buy foreign exchange set holding time, such as 1 day, 3 days, a week, two weeks, etc., if you buy the holding time has been to set the period, but the exchange rate did not occur as expected, but also did not reach the set stop-loss level, at this time, do not convert the time period of the currency pair held, immediately leave the market, so as not to turn short-term speculation into short-term speculation. To avoid turning short-term speculation into long-term investment, and eventually become a long-term hedge Three, mood swings stop-loss method: If you buy foreign exchange, feel bad, sleep and food, which indicates that they do not think the reasons for buying or confidence, which will affect the normal operation in the future, it should be decisively sold out Four, sudden events stop-loss method: If the foreign exchange bought a major event, so that the reason for buying disappeared, it should be stopped out of the market Five, judge the main stop-loss method: the main capital and position changes are the most reliable way to determine the main force in and out, if you can not see from the plate, you can use third-party websites, such as foreign exchange through the website, online check to know the URL, the above real-time capital flow and position details have become a necessary tool for retail investors, I use this to have a year 10 times The above is my time from the The above is my research from time, space, emotions and unexpected events, almost all-round and formed a professional Fakes multi-dimensional stop-loss law Of course, the above stop-loss methods to be used in combination, mastery, continuous improvement, in order to finally control the risk to a minimum degree Accurate judgment of the situation, select the buy point, set a good stop loss, strict discipline, the appropriate time to close, week after week, the profitability will improve day by day, the market will increase A game master, the foreign exchange market winners among the foreign exchange market, amateur speculators bankruptcy shortcut is: earn on the run, lose on the guard And the professional players constantly powerful magic weapon is: cut off losses, let profits run wild! Of course, stop loss is never the purpose, but for professional speculators, the concept of stop loss and stop loss principle of adherence is the basic guarantee of their road to success in practice, the continuous implementation of this concept will enable professional speculators to increase the success rate of the shot, the more accurate the shot point, although not necessarily to do a hundred battles, but will certainly do a hundred battles, the ultimate goal of stop loss rules set will certainly be The ultimate goal of stop-loss rule setting will be revealed! I would say that the highest goal of learning and using the stop-loss rule is - no more stop-loss!
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