Stop loss is a necessary means to control risks. How to make good use of stop loss tools, investors should have their own styles. In trading, it is very important for investors to grasp the overall position and trend of the market. Stop loss should be used more in the high-priced circle, less or no in the low-priced circle, and it should depend on the market movement trend in the middle-priced circle. Take advantage of the trend and make good use of stop loss points is the only way for investors to win.
Stop loss method of spot:
The first type is regular stop loss, that is, when the reasons and conditions for buying or holding disappear due to changes in market conditions, you should immediately close your position or stop loss.
the second category is auxiliary stop loss, which is often used in practice, including maximum loss method, retracement stop loss, sideways stop loss, expected R multiplier stop loss, key psychological price stop loss, tangent support stop loss, moving average stop loss, cost average stop loss, Brin channel stop loss, fluctuation stop loss, K-line combination stop loss, chip-intensive stop loss and CDP (contrarian operation) stop loss. Investors should judge according to their own risk tolerance and choose the stop-loss method that suits them.
The market is always fluctuating, and opportunities are always available. Our call list is not always called. The reason is that before we make a transaction, we need to refer to whether the stop loss position is well set, how much profit margin can be grasped, and whether it has played a role in making a small profit. This requires the judgment of important points (according to the specific resistance support level in daily market analysis). When we are long at a certain support level, the stop loss can be set below the next support level. Similarly, if we are short at a certain resistance level, the stop loss can be placed above the previous resistance level.
The size of the stop loss
can be set according to the resistance support in the above-mentioned stop loss points. Here, the size of the stop loss we are talking about should be set more according to the profit margin, that is, it is small and broad. When our profit margin can only see 5-8 points, the stop loss can be controlled at about 3 points; In operation, the stop loss point of long-term trading can be appropriately enlarged, and when the profit point is more than 3 points, the stop loss can be set to more than 8-1 points. Of course, the size of the stop loss is more about resistance and support.
spread in stop loss
We all know that the transaction cost consists of spread and commission. When placing an order, we try our best to find the best entry point and calculate the spread, so it is the same when setting the stop loss. We talked about finding the stop loss point and the size of the stop loss, so in the gold investment market, it is often a decimal point that can change the profit or loss, so we need to count the spread when setting the stop loss. Let's 5-18。 5 can be said to be its management scope. When we make more orders above this position, the stop loss needs to be set at 1799. 4 below (1799-1799. 4), by the same token, when we make an empty order below this position, the stop loss needs to be set at 18. On the top of 6.
several principles for setting a stop-loss point
1. Once the stop-loss point is set, it is not recommended to change it frequently unless necessary, and it should be implemented decisively. Stop-loss is actually the premise and guarantee for profit
2. Stop-loss point should be set before each trade
3. Stop-loss point can be changed flexibly, but it must not be changed at will. 4. Before setting a stop-loss point, it must be based on the current total.