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Speculation of foreign exchange risk management of the classification of stop-loss methods

2023/2/26 1:36:50  Classification:   Participation: 5  

Stop- bestforexrebate for a professional foreign exchange rebatemeaninginforexvestors, rebatesinforex an important part of the foreign exchange manipulation procedures to set up a stop-loss is to better risk control rebateinforextrading management, the nature of the stop-loss is not a direct investment loss, the essence is to protect the principal safety and insurance paid to the market, is the cost of investment in the foreign exchange market must bear an accident, enough to hit hard, if the establishment of Stop loss, it can reduce losses to a minimum level so stop loss has cashback forexecial significance and practical value   stop loss must be set up with iron discipline and strict methods, every time you buy foreign exchange, you must assess its potential risk, the implementation of stop-loss strategy to set up a stop loss and risk assessment is not because we are willing or able to withstand how much risk, but based on our current market and investment varieties Objective evaluation below we share the classification of stop-loss methods!  A, spatial displacement stop-loss method: 1, the initial stop-loss method: pre-set stop-loss position before buying the stock, for example, at 3% or 5% below the purchase price (short term, medium-term should not exceed 10% at most), once the exchange rate effectively fell below the stop-loss position, then immediately leave the field Here the said effective fall, generally refers to the closing price 2, the capital preservation stop-loss method: once the exchange rate rose rapidly after the purchase, it should immediately adjust Initial stop-loss price, the stop-loss price moved up to the capital price (buy 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 exchange rate from the capital stop price continued upward, it should continue to push up the position of the stop-loss 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 deviates, you should immediately exit 4, trend stop-loss method: to a proven trend line or moving average as a reference coordinate, observe the operation of the exchange rate, once the exchange rate effectively fall through the trend line or average, then immediately leave the field Second, the time cycle stop-loss method 3 time cycle stop-loss 1) 3 time cycle stop-loss means that if you use the corresponding entry strategy at the Dina Poli point to enter the field After the assumption that after 3 time periods, the market has not moved in the direction you expected, or even run in the opposite direction, then regardless of whether it is a win or a loss, you can consider leaving the market first The 3 time periods depend on the time period you are trading, if you are trading on the weekly chart, then 3 time periods means 3 weeks If you are trading on the daily chart, then 3 time periods means 3 days If you are trading on an hourly chart, then 3 time periods means 3 hours 2) 3 time periods does not include the first time period of the buy if you are trading on a daily chart, then it does not include the first day of the buy 3) The relationship between the 3 time period stop loss and the normal price stop loss is: the application of the normal price stop loss as the main, to apply the 3 time period stop loss as a supplement 4) If we have a complete trading plan and the price stop is very reasonable, for example under F5 or a gold overlay, we can not apply the 3 time period stop at all If we have applied the Minesweeper B entry strategy, then we can not apply the 3 time period stop at all 5) In fact, the 3 time period stop is mainly applied in some special trading contexts and For example, in the high time cycle of the XOP, in the low time cycle to catch the rally, grab the short term because there is no corresponding suitable Dynapoli point can be used as a stop-loss point of choice, or the stop-loss point is too far from the entry point, this time we must apply the 3 time cycle stop loss!  It is up to each trader to decide whether or not to apply a 3 time period stop loss. This should be included in your trading plan. For both Dexion and Goggin Foods, we have a comprehensive and detailed analysis of the different time periods, the trading background, the entry point, the stop loss point and the win target point, and so on. Another issue is the trading cycle. If we choose a trading cycle, we should base our trading decisions on the behavior of the market during that cycle. For example, if the market does not fall below the stop-loss point below F5 in the daily chart, then we will remain in the market and wait for the market to move towards our profit target point. They do not think the reason for buying or confidence, which will affect the normal operation in the future, it should be decisive to sell out of the limit of emotional tolerance: for small losses, probably any trader can tolerate, the problem is that the definition of small is different for different people, but when the loss exceeds a certain amount, most people will lose control of emotions, and then do something irrational, such as retaliatory trading, etc. The result is a bigger loss, so to keep each transaction loss can be relatively calm, and then also very sober and sensible trading exchange market, amateur speculators bankruptcy shortcut is: loss on the guard and the professionals continue to powerful magic is: cut off losses, let the 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 be The ultimate goal of stop-loss rules will be revealed!  The first thing that you need to do is to analyze the impact of the event, which is a short-term psychological impact? This is what we need to judge if we judge only a short-term psychological impact, or can be quickly compensated for, may also bring a certain investment opportunities, because the market will eventually return to the medium and long-term valuation level in the premise of being able to determine the short-term impact, may instead be for the long-term earnings of foreign exchange investors is an investment opportunity, just to be able to buy at a lower price Foreign exchange opportunities Also for investors who hold overnight positions, when setting stop losses, should be a combination of planned stops and sudden stops sudden stops on the investors psychological test is great, need strong self-control to deal with the psychological impact of adverse changes in the market, to make sensible stop-loss decisions In the absence of preset stop-loss instructions, if the exchange rate has broken through the pre-determined planned stop-loss level at the opening. Investors are often overwhelmed in front of the fierce changes in the market, and even under the psychological fluke difficult to make rational decisions, hoping to delay waiting for the exchange rate to turn in their favorable direction, which is the big taboo in foreign exchange trading Contingency stop-loss method: If the foreign exchange bought a major event, so that the reason for buying disappears, you should stop loss from the field to avoid suffering greater losses as foreign exchange investors, we face Is not for our will to transfer the huge money market, the foreign exchange market, the wind up not only lurks huge profit space, there is also the risk of losing your money need to be clear is that this market will always exist opportunities, but once lost, you will lose the ability to find opportunities again, therefore, in order to avoid risk, set a stop loss is not only very necessary, but also very important V. Judgment main stop-loss method  How to set a stop loss is the problem we encounter every day exchange, but in many cases, there are often a sudden reversal of the market before the start of large fluctuations, breaking through the important trend line or high and low points, which is where most people stop loss, sweep off and continue to run in the original direction, many people are making mistakes at this stage, stop loss was swept chase breakthrough is a heavy loss Judgment of the main stop method: the main capital and position changes are judged The most reliable way to determine the main force in and out, if you can not see from the plate, you can use a third-party website, check it out, the above real-time capital flow and position details have become a necessary tool for retail investors Accurate judgment of the situation, closely track the bull stocks, selected buy points, set a good stop loss, strict discipline, timely closure, week after week, the ability to profit will improve day by day, the market will increase a game master. Exchange market winners in the foreign exchange market, amateur speculators bankruptcy shortcut is: earn on the run, lose on the guard while the professionals constantly powerful magic weapon is: cut off losses, let profits run wild! Of course, stop-loss is never the purpose, but for professional speculators, stop-loss concept of thorough understanding 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, stop-loss rules set the ultimate goal will be The ultimate goal of stop-loss rules will be revealed!  Six, several common stop-loss method 1, a fixed proportion of stop-loss method This is a relatively intuitive and simple stop-loss method, it refers to the loss of a single species set to a fixed proportion, once the loss is greater than the proportion of timely stop-loss its characteristics is the role of mandatory more obvious, investors do not need to rely too much on the judgment of the market, usually set the stop-loss proportion of investment varieties to 7% in practice, we will sometimes Investment varieties in a trading day when a 7% drop in the implementation of stop-loss strategy, especially when the market appears sudden adverse news, more cautious, which in the mobile stop-loss (stop-win) strategy, the use of more 2, moving average stop method Moving average stop method, usually refers to the stop-loss strategy taken when the exchange rate effectively falls below a certain average, generally short-term use of 10-day average, medium-term use of 20-day average, when the exchange rate once the effective fall below the average line is a stop-loss, especially when the average line from rising to flat or downward trend, more immediately stop-loss out of the game to the 20-day average as a stop-loss level is based on the following considerations: First, the 20-day average has the significance of the medium-term trend; second, in practice, the 20-day average breakthrough (up or down) is often accompanied by a breakthrough pattern, with a more practical Three is in the more active market, to prevent the market fluctuations due to the shock of touching the stop-loss line and passive stop-loss out 3, the trend line stop-loss method The trend line stop-loss method refers to the exchange rate in the process of rising, obviously formed an effective uptrend line, when the exchange rate effectively fell below the uptrend line, that is, to take a stop-loss strategy, the use of trend line trading is the actual operation of the stop-loss (stop-win) and lock profits more Usually a clear uptrend line is best connected to three lows, and each retracement of the closing price are above the trend line in practice, when the exchange rate has been a large increase, the effective breakdown of the trend line often indicates the reversal of the medium- and long-term trend, which should immediately close the position out 4, the morphological stop-loss method Morphological stop-loss method refers to the process of running the exchange rate formed in the head and shoulders, double top, dome, triangle Triangle and other patterns for the stop once the effective break down the pattern, often indicates the possibility of a change in trend, at this time should immediately stop loss out of the market, especially when the market atmosphere has changed or turned, it is so technical stop-loss strategy, in addition to the above several common methods, there are such as K-line combinations, jump gap theory, wedge and other methods, a variety of methods vary from person to person, according to local conditions, can be opportunistic use of the above stop-loss method sometimes can be used alone, but also in combination with each other, such as trend lines and averages and gaps and the combination of stop-loss method, etc. In practice, we observe that when the trend reverses, the pattern of the break and the moving average or trend line break often occurs at the same time

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