Gold has now become a precious metal that many people choose to invest in, because the value of gold is relatively preserved, especially since the outbreak of the epidemic this year, the U.S. dollar has experienced a substantial depreciation, and people’s trust in the U.S. dollar is far less than that of gold. , So people will also buy gold to keep their investment funds, but the value of gold is not always constant, the price of gold will change with the changes in the market, when you are investing in gold, if there is In the case of a loss, do you continue to choose to wait and see? Or stop the loss immediately? Some people even choose to take profit. These operations are an indispensable part of the process of gold trading. So what do you mean by stop profit and stop loss in gold trading? What are the stop-profit and stop-loss techniques?
What is the meaning of stop profit and stop loss in gold trading? Stop profit and stop loss techniques
What does stop profit and stop loss mean in gold trading?
What are take profit and stop loss? The stop loss in gold trading is now what people call cutting meat, which means that in the process of gold investment, there is a loss when the predetermined amount has been reached, and you must start to liquidate your position in time to make yourself as little as possible. Loss some, the purpose is also to limit the wrong investment to a very small range, and in gold investment, you must not only get more benefits, but also pay attention to the problem of stop loss, so as not to make yourself wrong. Of investment. The take profit is also called stop profit or stop profit, that is, the price of the entire target is in the situation of pending orders. Take profit is to close when you see it, and you will not be required to get special benefits.
What are the techniques for stopping profit and loss in gold trading?
Next, let’s talk about some techniques for stop-profit and stop-loss. First, stop-loss. Stop loss is based on the setting of the holding period. For the different holding period, the stop-loss is also based on the size of the market entry price. There are big differences. The longer the holding period, the longer the stop loss point range. Secondly, the stop loss is set according to the range of price operation. The price patterns in different time units are different. , And there will be some fluctuations in the early period, but if you stop the loss according to the price, it can bring great benefits. Take profit can be taken from the position period setting, or it can be set from the current market trend.
Seek the stop loss point of the order: the market is always fluctuating, and there are opportunities at all times. The reason is that before we make a transaction, we need to see a certain position at the same time, we also need to refer to whether the stop loss position of the order is well set and how much profit space can be grasped , Whether it has played a role in gaining a small gain. This requires the judgment of important points (which can be seen according to the specific resistance and support levels in the daily market analysis). When we place a long order at a certain support level, the order The stop loss can be set below the next support level.For the same reason, if you place a short order at a certain resistance, the stop loss can be placed above the previous resistance level.
The size of the order stop loss: It can be set according to the resistance support in the stop loss point of the order above. The size of the order stop loss we are talking about here should be set according to the profit margin, which is small and big, when we When the profit margin can only see 5-8 points, the stop loss of the order can be controlled at about 3-4 points; the stop loss point of the long-term trading order can be appropriately enlarged, and the profit point is more than 30 points, the order The stop loss can be set to 8-10 points or more. Of course, the more reference factors for the size of the order stop loss are resistance and support.
Spreads in order stop loss: We all know that the transaction cost consists of spreads and commissions. When we place an order, we try to find the best entry point and calculate the spread. Then the same is true when setting the stop loss of the order. I talked about finding the order stop loss point and the size of the order stop loss. In the trading market, it is often a decimal point that can change the profit or loss, so we need to calculate the spread when setting the order stop loss.
Stop loss and profit setting method
(1) Set according to personal investment habits. For example, short-term investment and long-term investment, due to different investment risks, price fluctuations and other reasons, investors are also different in the settings of stop loss and profit. For example, short-term trading of spot gold with a stop loss of 3-5 points is appropriate. , And long-term investment in spot gold may be set to 10-12 points.
(2) Set according to the current investment situation. The ultimate goal of setting stop-loss and take-profit for spot gold is to allow investors to lose less and make more profits, which leads to different investment situations and different settings for stop-loss and take-profit.
(3) The method of setting stop loss and profit for spot gold is different. What is going on here? Sometimes the stop loss and profit will not be changed after it is set, and sometimes it will continue to change according to the investment market, mainly depending on the market trend.
In fact, stop loss and take profit are very important to individual investors, because a good method can allow investors to reduce their investment damage.