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Foreign exchange risk management stop loss


In the foreign exchange market rebateforexvestors are very clear about the importance of r Forex Rapid Rebatek management stop rebateforexbroker, but in practice to implement it is very difficult to find out the reason, in fact, are psychological factors at play, unwilling to admit the loss out of the game cashback forex the wrong to think that the book loss is not equal to the actual loss, once set in, long-term dead, in the end, not only on the psychological, mental aspects of many pressure  The most important thing is that the book loss really becomes the actual loss, the harm is very big after a long-term expert survey found that the foreign exchange risk management, most investors for the meaning of stop loss is still relatively clear, is the ForexRapidRebate of stop loss is relatively vague and unclear the following is to teach you the simple and most effective stop loss method Foreign exchange market, the establishment of a stop loss is very important Therefore, investment in foreign exchange has three most important elements However, in practice, investors are often set up because the stop loss is not scientific enough to cause losses In fact, the general stop-loss position is set up in the following ways: First, in the important support or resistance level was broken after the stop loss The first: is in the important support or resistance level was broken after the stop loss: this is in the actual battle However, careful analysis of domestic and foreign foreign exchange trends chart you can find that in the foreign exchange market, there are often resistance or support positions are broken after the price trend reversal pattern However, there are several important resistance or support positions: the price of a longer period of dense transaction area; a longer range of prices The main reasons for the lack of availability of these positions are: a. Large speculative funds can predict the approximate stop-loss price of market investors, and they even deliberately put together a large number of transactions at certain price levels to form the illusion of strong support or resistance, and then break through these positions with the advantage of capital, and reverse the operation after the stop-loss plate is presented Profit b, the trend line, the average system, the golden mean, the support position or resistance position provided by the position itself has a greater objectivity, the lack of trustworthy basis and foundation, the accuracy is very low, in these positions to set up a stop-loss point is especially like neck to die Second, the absolute amount of loss after the degree of stop-loss Second: the absolute amount of loss after the degree of stop-loss: Now, in foreign countries this is the most excellent trader to use the stop-loss The main point of the operation is to set up the maximum loss of funds into the site, the general 5%-20% of the funds occupied, can also be the absolute amount of funds occupied, such as one hundred dollars per hand if the loss amount is reached, regardless of the price level immediately stop loss from the field While using this stop-loss method, we must pay attention to the following two points: 1, not the species or different as the time period to be used However, the advantages of this stop-loss method are obvious: 1, highlighting the principle of capital management foreign experience shows that good traders do not lie in how to analyze the market but in how to manage the money 2, with the advantage of probability, the longer the operating time the more obvious the advantage 3, the stop-loss position away from ordinary investors The first stop-loss position is set to prevent the market risks associated with the use of this stop-loss method, you need to do a lot of statistics and analysis to determine a good operating strategy to find the best stop-loss amount suitable for their own operating style Third, the self-tolerance limit is reached after the stop-loss third: self-tolerance limit is reached after the stop-loss: this type of stop-loss method is often used by beginners in the short term operation using this stop-loss method is useful for In fact, some of the best foreign traders often use this type of approach The specific use of the method is: when your position parts show a loss, as long as you can still take over, then you can keep your part, or immediately stop loss out of the field, even if you are just established positions Forex training experts believe that this method is suitable for the day short term trading, but also suitable for the However, the main basis for using this method is that when you establish a position, suppose you feel very uncomfortable, it is usually because the market presents some kind of phenomenon that you did not expect, perhaps because of short term trading so you can not analyze too much information, or perhaps because of other things that make you Temporary do not know, but long-term manipulation makes you feel the risk of the market, then you should immediately leave the field to watch Fourth, the fixed stop-loss method: fixed stop-loss method: the simplest stop-loss method, it refers to the amount of loss set to a fixed percentage, once the loss is greater than the proportion of the timely closure of positions it is generally applicable to two types of investors: First, just entered the market investors; second, the risk of larger markets (such as the foreign exchange market) in the Investors The mandatory role of the fixed stop loss is relatively obvious, investors do not need to rely too much on the judgment of the market stop loss ratio is the key to fixed stop loss The proportion of the fixed stop loss consists of two data: one is the maximum loss that the investor can afford to lose this ratio varies depending on the investors mindset, economic capacity, and also with the investors profit expectations V. Psychological stop-loss method: the main thing is that the investor Grasp the personal psychological tolerance, set the corresponding stop-loss point For example, when buying foreign exchange set down 5% or 7% for the stop-loss point, or set the amount of money down for the stop-loss point, is completely personalized according to the investors personal situation, there is no special technical requirements but need to emphasize the point is that setting a stop-loss point of more than 10% does not make any sense, which has nothing to do with how much the investor has assets Technology Stop-loss method: more complex is the technical stop-loss method it is the combination of stop-loss settings and technical analysis, after eliminating the random fluctuations in the market, in the key technical level set stop-loss orders, so as to avoid further expansion of losses This method requires investors to have strong technical analysis and self-control Technical stop-loss method compared to the previous requirements of the investor is a bit higher, it is difficult to find a fixed pattern generally speaking The technical stop-loss method, the use of technical stop-loss method, is nothing more than a small loss betting on a large gain Sixth, the average stop-loss method: This method is used by most investors, for example, the exchange rate fell below the 5-day average or 10-day average as a stop-loss point; or fell below the rising trend line as a stop-loss point; or fell below the lower line of the previous finishing platform as a stop-loss point and so on, but due to psychological factors and many other aspects of the impact, often in the actual combat implementation is not effective For example, originally set 5 In fact, this method is both simple and practical, only need investors to overcome psychological barriers in their daily operations can Unconditional stop-loss method: regardless of cost, the stop loss is called unconditional stop-loss when the market fundamentals have taken a fundamental turn, investors should abandon any illusions, the In fact, in order to understand the above stop-loss method at the same time, investors should pay more attention to their own psychological training on the stop-loss, must clearly understand the rules and methods of the game of money, so as to ensure that they will not lose money

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