What is a stop loss? What is the point of a stop loss? How to determine the stop loss point?

　　As the saying goes:the apprentice is the one who can buy,and the master is the one who can sell.In foreign exchange trading,the use of stop loss and take profit is equally important.The ever-changing financial market is full of opportunities and traps,and a beautiful stop loss can effectively reduce losses and protect our capital.Gold,to survive in the market for a long time,is especially critical for the learning of stop loss points.

　　Stop loss,also known as stop loss,stop loss,is a limit transaction order,the English name is Stoploss."Stop-loss"is relative to"stop-profit".Take-profit is to execute the sell order in time when the profit is made,and to keep a certain profit,while stop-loss is to exit the game in time when the loss reaches a certain amount to avoid causing greater losses.,to keep the principal.The purpose of the stop loss is to limit the loss to a smaller range and cut the loss when the investment fails.Reasonable use of stop loss points can greatly reduce the risk of the market.After all,market risk is not terrible.What is terrible is the risk of losing control,and the use of stop loss points is actually the control of risk.

　　In foreign exchange trading,if you want to make continuous and stable profits,it mainly depends on the"profit-to-loss ratio"and the winning ratio,that is,the margin of profit is larger than the margin of loss,and there are more profitable orders than loss-making orders.less”situation,so as to achieve positive returns.After buying a set of currency pairs,we find that the market trend is not as good as we expected.At this time,the market proves that our view is wrong,then setting a stop loss point can help us correct mistakes.Furthermore,the foreign exchange market is changing rapidly.Even if we buy a group of currencies,it is consistent with the market trend at the time,but once the market environment changes,the original reason for buying has been proved to be wrong by the market.Stop loss points are also required.In addition,when the market is in a state of panic selling,it will face continuous irrational sell-offs,such as the recent impact of the Omicron virus strain in South Africa.Losses,but as long as a certain range of stop loss points are set,it will not help us to let the market continue to fall sharply.The stop loss points have helped us avoid market risks.

　　Therefore,setting a stop loss point is very important for foreign exchange trading.Due to its high volatility and leverage,foreign exchange contracts can make large profits in limited opportunities.At the same time,improper operation may also cause large losses.As long as you always remember to set The stop loss point can"cut losses and let profits run".

　　There are many ways to set stop loss points in the foreign exchange market.The main points are as follows:

　　technical analysis stop loss

　　The technical analysis stop-loss method is to determine the position of the stop-loss point by using the support and resistance levels in technical analysis,buying and selling signals with the help of various indicators or technical patterns.

　　Taking the support and resistance level as the stop loss point as an illustration,once the price touches the support level or resistance level,the system will automatically trigger the stop loss limit order and execute the closing out.For example,if you buy a long order of gold at 1795,set a stop loss point below the support of 1790,which is the intensive consolidation of the K-line chart.This strategy is to go long at the support of 1790,and once the support falls below the support,it will automatically execute the stop loss and acknowledge the loss.Since then,the price has risen and has not retraced to 1790,so the stop loss has not occurred.This is the way to use the support level of technical analysis as the setting method of the stop loss point.

　　At the same time,the trend of technical analysis can also be used to determine the stop loss point.The market price always runs along the trend and will not break easily.Operating along the trend is a method with a higher success rate.At this time,it can be applied to the trend line.Once the price A break below the trendline is a signal of an inflection point in the market and is where a stop loss is set.

　　As shown in the figure,buy a long order of gold at any position above the rising trend line,set a stop loss point below the trend line,and then the trend line is broken down,a short inflection point is formed,and the stop loss point is touched to exit.

　　In addition to the above two examples,there are many technical analysis methods to determine the stop loss point.For example,you can use the golden fork and dead fork of the moving average to determine the stop loss and stop profit points,and use technical patterns(various top and bottom patterns),as well as MACD(exponentially smoothed moving average of similarities and differences),KDJ(stochastic)Indicators),RSI(Relative Strength Indicator)and other technical indicators are used to set stop loss points.Due to the limited space,they will not be introduced one by one.Interested friends can continue to lock the mutual market network and learn the above technologies.

　　Percent Stop Loss

　　The percentage stop loss method is to set a fixed percentage ratio as the stop loss point.When using this method,the relationship between profit and loss ratio should be fully considered,and the ratio of the stop profit point should be greater than that of the stop loss point.For example,10%is the stop loss point,then 20%is the stop profit point.Taking crude oil as an example,if the price of buying crude oil is 50 US dollars,it is assumed that 5%is the stop loss point and 10%is the stop profit point.The formula for calculating the stop loss point is:50×(1-5%)=$47.5,and the formula for calculating the stop loss point is:50×(1+10%)=$55.Referring to this formula,other values can be set according to different varieties and different trading habits.For example,some trading varieties have high price elasticity.If the set value is too low,frequent stop losses will disrupt the trading plan.If it is too large,it will exceed the expected loss,so you can increase or decrease the percentage value of the stop loss point according to the price characteristics of the specific variety.

　　time stop loss

　　The time stop loss method is to set the stop loss point according to the time.For example,in intraday trading,the longest stop loss time is before the closing of the day.No matter whether the profit or loss is before the closing,you must exit the market.This mechanized and programmed setting can be effective.Avoid unnecessary risks due to wars and flukes.The point of the time stop-loss method is to determine the time when the product will rise or fall before placing an order,and verify the right or wrong of your analysis within a limited time.Choose a buy or sell point.For example,you expect that the euro will rise at the start of the European market today,so you buy the euro,but the euro has not risen since then.At this time,it is near the opening of the US market,and you are not sure about the data to be released in the US market and the events that will happen.The basis is also based on the European market,and the final market cannot go as expected.At this time,it is necessary to play before the US market to avoid unknown risks.If you hold the European market order to the US market,it will go against yourself.The original intention of using the stop loss point is to avoid the weakness of human indecision.This time stop-loss method is much smaller than the technical analysis stop-loss method or the percentage stop-loss method,because the decision to sell is based on time,not when it falls to the stop-loss price and then sells.

　　moving stop loss

　　The moving stop-loss method,also known as the trailing stop-loss method,means that the stop-loss point moves with the rise or fall of the price.It is suitable for use in unilateral trend markets.By moving the stop-loss point,the profit is protected and the profit is maximized.At this time,the percentage stop loss method and the technical analysis stop loss method can be used.Taking the percentage stop loss method as an example,when the stop loss point is set as the market price falling 5%,when the price does not retrace 5%in the upward trend,it will continue to rise.Continue to hold,and once the pullback falls below 5%,sell to lock in profits.

　　Continuing to take crude oil as an example,assuming that the buying price of crude oil is$50,the stop loss point can be set at$47.5,assuming that it is subsequently stimulated by good news to rise to$60,and the intraday price does not fall below$45,the new stop loss point It is$57{calculation formula:stop loss point=60×(1-5%)},and then you can set stop loss points by analogy,until the price falls below the new stop loss point and sells,then the The stop loss point is also equal to the stop profit point.The advantage is that the stop loss point will continue to rise as the price rises,preventing the price from being sold prematurely in the general trend,and truly realizing"cutting losses and letting profits run".

　　When trading on the mutual market platform,you can directly use the trailing stop loss to automatically execute the movement of the stop loss point,and set a point by yourself,such as setting a trailing stop loss of 300 points,then every time the market is in the direction that is favorable to you When it changes by 300 points,your stop loss will automatically change with it,and keep it at a level of 300 points away from the new position.When encountering a change in the market,you don’t need to worry about not having time to watch the market and failing to exit in time.