The Importance of Stop Losses and Precautions
The Importance of Stop Losses and Precautions: What cashbackforexprofitcalculator.com">cashback forex profit calculator the essence of a stop forexcashbackprofitcalculator? Stop-loss is the measure and means to mend the fold. Here, let us first talk about the necessity of a strict stop-loss. The uncertainty of the market creates the necessity and importance of the existence of stop-loss successful investors may have their own different ways of trading, but stop-loss is a guarantee that they get The worlds investment guru Soros said, investment itself is not risky, out-of-control investment is risky learn to stop loss, never fall in love with a loss stop loss is far more important than profit, because at all times capital preservation is the first, profit is the second, the establishment of a reasonable stop-loss principle is quite effective, the core of the principle of prudent stop loss is not to let the loss continue to expand Why is stop loss so difficult? Understanding the significance of stop loss is important, however, this is not the end result in fact, investors set a stop loss and did not implement examples abound, the market, the tragedy of being swept away almost every day Why is it so difficult to stop loss? There are three reasons for this: First, the psychology of luck some investors, although they know that the trend has broken, but because they are too hesitant, always want to take another look, wait a bit, resulting in their own missed stop-loss good time; Second, the frequent price fluctuations will make investors hesitant, regular wrong stop loss will give investors a lingering memory, thus shaking investors next stop-loss determination; Third, the implementation of the Stop loss is a painful thing, is a bloody process, is the challenge and test of human weakness In fact, each transaction we can not determine the right state or wrong state, even if the profit, we also have difficulty deciding whether to immediately exit or hold the wait and see, not to mention is in the state of the set human nature to pursue greed instincts will make every investor is not willing to win a few points less, not willing to lose a few more It is for the above reasons, when the price reaches the stop-loss level, some investors are wrong, suffering from loss, stop-loss position changed again and again; some investors have a temporary change of heart, counter-trend position, attempting to throw in the towel, in order to recover losses; some investors in the expansion of losses, simply take the ostrich policy, let it be Understand the stop-loss is essentially how to correctly understand the wrong stop-loss wrong stop-loss we should also be open to Accept, for a simple example, if your stop loss in the transaction are correct, it means that each of your transactions are correct, and your transactions if they are correct, then why stop loss? So, stop loss is a cost, is the cost of finding profit opportunities, is the price that must be paid for trading profit, this price is only the size of the difference, there is hardly a right or wrong, you want to profit, you must pay the price, including the price caused by the wrong stop loss Stop loss should pay attention to the problem One, everything in advance, not in advance, all the stop loss must be set before entering the market to do foreign exchange investment, must develop a good Second, the stop loss to be combined with the trend of three trends: up, down and consolidation in the consolidation phase, the price in a range of stop-loss error probability to be large, therefore, the implementation of the stop loss to be combined with the trend in practice, we believe that consolidation can be regarded as Third, the choice of trading tools to gra cashbackforexpipcalculator the stop-loss point which varies from person to person, can be averages, trend lines, patterns and other tools, but must be suitable for their own, do not because others use a good you blindly use trading tools to determine the very important, and the ability to use trading tools will lead to completely different trading results In short, in the foreign exchange investment trading In short, in the process of foreign exchange investment trading focus on sound trading strategy, which can be seen as the core of money management, and stop loss can be seen as the soul of money management, but good money management, strict stop loss, in order to long flow of water, to become the investment markets winning general Finally, let us say a word: stay in the green hills, not afraid of no firewood!