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The sudden stop loss response strategy


Forexrebatekingvestors in the foreign exchange market from the first day, should always bear in mind that investment r forexrebateindonesiak, cashback forex the most effective way to prevent risk is to set up a stop Forex rebate king stop loss is a necessary trading skills of foreign exchange investors, strict compliance with the stop loss discipline will become the only rule to ensure that investors survive in the risky market stop loss is a basic skill of foreign exchange investment for newcomers, many people believe that everyone has to First experience the process of losing money before reaching the other side of success, and losing money is the tuition fees that investors must pay &nb cashbackinforex; In mature foreign exchange trading, investors generally only trade when the expected profit-loss ratio exceeds 3:1 If you follow this principle of investment, it is not easy to generate losses in the long run Generally speaking, the final loss is due to the failure to implement the profit-loss ratio of 3:1 set stop loss and Generate unplanned excess stop loss and most of this loss is from the so-called sudden stop loss Therefore, control sudden stop loss becomes one of the important means and ability to succeed in foreign exchange trading 1, planned stop loss alone from the surface meaning, planned stop loss is set in the development of a trading plan stop loss price or condition signal but from a more in-depth understanding, planned stop loss (can also be said to be the stop-loss behavior) in practice is possible According to the plan set by the price is executed, generally expressed as the market trend with continuous price and full market liquidity Stop-loss methods can be divided into three categories: fixed stops, trailing stops and conditional stops Fixed stops, that is, by limiting the specific stop-loss position, so as to fix the amount of stop-loss losses such as 10% stop-loss method or technical patterns of price stops, etc. This type of stop-loss generally have a clear plan loss limit, can be a good reflection of the profit and loss ratio. This type of stop loss is generally not set at a specific stop loss price, but can be used in conjunction with trading conditions. It is a good stop-loss strategy that helps traders to catch most of the trend of a conditional stop, i.e. by assuming in advance that certain conditions will occur in the market and then closing the position if the expected conditions do not occur. If the expected situation does not occur that is to close out of the position such as fundamental data before the announcement, the data is expected to be positive, but after the announcement of the data and the expected inconsistency, that is, to close out of the position again, for example, if the expected price in a certain period of time should occur some kind of change, but after the expected change did not occur, then close out of the position can also be regarded as a conditional stop loss to put it in laymans terms, that is, when it should happen but did not happen, that is, to carry out This method of conditional stop loss, the average investor is less used and due to the method of subjective judgment component more, in the use of the best and other methods used in combination, will be more secure In short, the plan stop loss methods, but no matter what kind of stop loss method must be clear and enforceable 2, sudden stop loss sudden stop loss refers to the plan stop loss can not be effectively implemented when the stop loss, the specific performance For, unexpected circumstances arise, or no continuous price can be implemented, or due to a lack of liquidity caused by the planned stop-loss obstacles sudden stop loss loss refers to the loss of more than the planned stop loss on the one hand, the price has touched the stop-loss level, according to the plan is supposed to stop loss out of the game, on the other hand, and due to excessive price oversold, there is always the possibility of a significant rebound, if the stop loss may be stopped at a low level, if not stop loss, and continue to All kinds of ideological struggle seriously interfered with the normal decision-making thinking of investors, at this time, if the price continues to fall, at any time may lead investors to make a psychological stop loss in the actual transaction, many examples of this, especially in the metal, foreign exchange, so that investors can not be normal as planned for effective stop loss so effectively avoid or mitigate sudden stop loss, for investors is very important  3, countermeasures and recommendations The phenomenon of sudden stop loss is difficult to avoid, but to some extent we can still reduce sudden stop loss through a number of measures to reduce the loss of the author believes that to effectively reduce sudden stop loss, first of all, is to strengthen the research efforts of the species, to understand its characteristics Secondly, to carry out reasonable capital management reasonable capital management in addition to ensure that the account does not appear vicious losses, but also to reduce A good trading plan should sometimes include measures to deal with sudden stop losses. For sudden stop losses, the psychological impact on the trader is great, which requires the trader to constantly experience the degree of psychological impact of market changes on him or her, and to master ways to reduce panic. In addition, when the sudden stop loss occurs, the best way to recover from the trading psychology is also very necessary is to be good at forgetting To do a good stop loss in the currency market, you must be good at doing two forgetting: first is to forget the purchase price regardless of the price at which you bought, buy immediately after you forget their own purchase price, only according to the market itself to decide when you should stop loss according to the plan, do not make their own The second is to forget the stop-loss price, that is, immediately after making a stop-loss forget this stop-loss, do not once bitten by a snake ten years afraid of the well rope should be in the market again when the trading signal, do not hesitate to act again Finally, I would like to emphasize the professionals a saying: always stand at zero point just as buying may make a mistake, stop-loss will also make a mistake, when you find yourself stop-loss error In short, to use reason and decisiveness to overcome greed and fluke, in order to be able to walk with the market for a long time
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