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Do you really understand stop loss in forex trading

{}Posted in2023/2/24 18:23:49 | 4Browse

The gene cashback forexal consensus rebatesforexbroker that stop best forex rebate company is part of risk management, but when to stop loss but many investors feel difficult, today we will talk about stop loss First of all, let us explain stop loss in an easy to underst bestforexrebatecompany way: there is a very famous indicator in foreign exchange, called the crocodile line from the chaos theory based on the opening and closing of the crocodile to determine the current state of the market, if you enter the field when the crocodile opens, to If you enter the market when the crocodile opens, you will have to be bitten by the crocodile to escape in time when the crocodile closes its mouth, which is the stop loss Why are many people reluctant to stop loss? The first psychological factor is loss aversion our human nature aversion to loss, and is particularly averse to loss, after investigation, the loss of a dollar of psychological aversion, to make up for it with the psychological joy of earning two dollars psychologists and behavioral financiers called loss aversion huh, I think this forexrebatecommission also explain why people always remember the pain of their lost love for a long time, but soon forget the happiness of a successful relationship second The psychological factor is to cover up as long as I do not sell, the position is still in, the loss is only book loss, the professional term is floating loss, maybe instantly back up but once I sold, the loss is the real money in the capital account, the floating loss has become the real loss of the third psychological factor is pride loss, loss, loss is not just money, loss is the people why others can make money, I can not make money? If you dont sell, at least there is hope to come back, and then slim, there is also a little hope a sell, a cut, is to admit defeat admit loss admit admitted, in front of others can no longer raise their heads to the pros and cons of stop loss stop loss can limit the risk of using stop loss is of course the primary purpose is to reduce losses if your position has completely deviated from the trend you bought, then stop loss is the best choice to protect you from losing your money e fxrebatecentralecially in When you cant keep a close eye on the market - setting a stop loss will keep your losses within your expectations and avoid emotional trading. In addition to automatic execution, a stop loss can help you avoid making bad decisions based on your overall trading strategy. If the stop price is too close to the opening price, it is likely that your stop order will be triggered before you can take a profit when the market moves normally. Take full account of short-term fluctuations, the use of indicators to measure market volatility becomes very important at the same time your stop-loss orders depend on your trading type For example, you are a short term trader, then your stop loss should be set closer to the down point, if you are a long term trader, you can set the stop loss point wider Stop loss classification and meaning of stop loss can be broadly divided into four types: 1. After buying the trend is contrary to expectations, after X% unconditional stop loss, where the X% depends on your risk aversion, is also the most loss you can accept because the buy point is based on, after buying no rise should be alert, and fell more than X points is extremely abnormal, indicating that the transaction has been wrong The most objective and sensible approach to stop loss at this moment is the possibility of an immediate rise, which is the price to pay for the resolute implementation of the stop loss, but the price is worth it, adhere to this overall view of your trading losses are small, but the winnings are substantial and the number of stop losses you will find that the frequency of the rise after selling must be far less than the frequency of the fall and, many stop losses can often Help you avoid those large declines long live in the capital market and achieve stable profits based on, is to try to avoid each large level of adjustment, can do this completely only one method: is the stop loss how much money you can earn depends on the market, but how much money depends entirely on their own grasp of the stop loss stop loss is also the last opportunity to correct the market misjudgment