After some time, foreign exchange traders will have a clear understanding of joint operations. For example, stop loss and breakeven are entry-level courses, but it is not easy to find these two courses.
If these two mountains are behind us, trading foreign exchange will be relatively easy. Whether you are a foreign exchange tycoon for many years or an entry-level editor, I want to ask you, do you know when you can stop loss? Today, let's talk about two or three things to prevent loss! The foreign exchange stop loss is originally at this point; no wonder many people are still losing money!
Combination of stop loss and technical indicators: When stopping loss, we first need to exclude random fluctuations in the market and then set a stop-loss order at a critical technical position to ensure that the loss will not be further increased. In other words, this is to bet a big win and a slight loss. We need to analyze the form of operation through market prices. Once the price is damaged, we must firmly stop the loss and seize the opportunity in the downward trend. In particular, reducing the slight fluctuations of unfavorable factors is necessary so that investment often has an illusion that stops falling and then misses the stop loss moment.
Our commonly used K-line stopping methods also include typical K-line combinations, including two yins and one yang, one yin and three lines-guillotine or two yins after yin, as well as some meteors, evening stars, and three crows. The chip stop loss method uses the transaction-intensive area to produce some natural resistance and support the exchange rate. Once a solid bottom is reached, the original support area will become a resistance area. According to the intensive trading area of the chip, a stop-loss point will be set. Once there is a breakout trend, the stop loss will disappear immediately. There is a third kind of person, random money as a stop-loss order, which is a typical begging for help. If Xiao Wang wants to short his account and assume a loss of $1000, he still wants to sign a third-party contract. Each of them has a stop loss of $3.50. The most common situation in the market is that the price will only fall after the market trend hits Xiao Wang's stop loss. But Xiao Wang may have the right investment direction because if you use chart analysis as the basis of the stop loss and use the market trend judgment, then the stop loss will have "real value".
As for setting the critical points of the stop-loss order, we should choose the analysis method that suits us to make a decision. For example, commonly used shape analysis, average line, or computer analysis systems have their unique calculation methods, but we also need to pay attention to the following points:
When you choose the right market entry direction, we can change the original stop-loss price < stop loss as the market changes, guarantee the principal, and at the same time, we will try to get as much profit as possible. At this time, we will turn the stop loss into a profit statement.
After setting the stop price, even if the stop price is delayed in the real market, we cannot cancel it.
We must set a stop loss before entering the market to observe market trends more confidently.