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Foreign exchange trading stop loss to be meaningful

to thank my master, more than a year ago and I said six words: "stop rebateforexfee to rebateforexbroker meaningful" six words, more than a year, subtle, silent collation of their own understanding of these six words first, the opening of the entry to be meaningful regardless of pending single stop or subjective stop loss, a stop loss set down, a stop loss. Must mean an entry Lao Tzu once said: "The soldier, the ominous weapon ...... must ForexRapidRebate be used" trading Forex Rapid Rebate the same, an open entry, means a risk exposure not necessarily profit, not necessarily loss, but exposure must be exposed stop loss is only to the risk To make a stop loss meaningful, the premise is that entry must be meaningful According to JasonWilliams, "Most people who trade are not actually doing it to make a profit They think they are doing it to make a profit, but in reality it has more to do with something else" Traders need to Continuously overcome the tendency to trade frequently Entry is meaningless, then stop loss is meaningless Aim to hit and destroy an enemy with each bullet How do you measure whether entry is meaningful? To see if it is in line with ones trading system, for example, when do you lift the fishing rod? The fish drift moved, the hand also reflected every angler is waiting for this moment, there is no such reaction, the fishing rod to be motionless trading is the same, only in line with the trading system signals appear, to lift the fishing rod, the single entry This is the first step, is the most basic requirements as to whether the trading system signals are too frequent, whether it can be optimized and omitted, that is the latter thing In short, the stop loss to have meaningful The first step is to have a meaningful entry Second, the stop-loss point should be meaningful Set the stop-loss point, we will sometimes choose a level K-line key price level, sometimes choose the average, trend line, sometimes choose a value of an indicator as a trigger point for stop-loss Roughly rebateforexeaking, as long as the stop-loss point is clear, the reason behind the stop-loss is not the same as the meaning of the stop-loss Many times, there is a reason for the The stop-loss point is meaningless here to clarify a concept, what is the meaning of stop-loss? The purpose of a stop loss is to get out of the market in time to end risk exposure when the market is not operating as we expected. With this purpose, the meaning of a stop loss is whether it contributes to the purpose, i.e. - whether it is not sluggish or allergic. It is very common for traders who have just achieved firm execution of the trading system to say "hold on, wait", but in reality, the basis for the entry has been disproven. In some volatile periods, too small a stop loss (often in the form of small K-line highs and lows, short-term averages, etc.) can be swept away, the position is gone, and the price continues to run in the intended direction. The trader can tell himself that "its right even if the stop loss is wrong", but after all, the "direction" is right, but the volatility of the "direction" is not right, so the standard of the ideal stop loss is still not considered. "and "wrong is also right" between repeatedly wandering, and eventually, insist on becoming arbitrary, confident into cowardly, such fluctuations will eventually destroy a trader insisted too hard, sometimes the wrong method stop loss to be meaningful, the second step, the point selection must be meaningful third. The magnitude of the stop loss must be meaningful magnitude and point is different, the value of the point lies in the qualitative analysis of the right and wrong, the value of the magnitude lies in the quantitative analysis of the value or not simply put, the magnitude of the stop loss determines the profit and loss ratio a wave of the market, in the view of professional traders, either a general consideration (related to the target level of one, two, three), or not set expectations at all, trend tracking no matter which way, the stop loss magnitude and profit and loss ratio The profit-loss ratio is inversely proportional to the minimum requirement for a win rate, so the stop-loss margin is proportional to the minimum requirement for a win rate - the smaller the stop-loss, the less important the hit rate is The larger the stop-loss, the higher the win rate requirement is To take a trend following strategy as an example, a common win rate for a trend following strategy is 30%-50% It is generally believed that a win rate of more than 50% is either It is known that trend traders should not over-filter their entry signals and lose more than they gain. In fact, this path is indeed a common way for trend traders to improve their trading performance thousands of people, the water has no permanent shape stop-loss magnitude is not a certain rule, there is no optimal solution to the general principle can be clear, stop-loss should not be too large, too large stop-loss hurts the profit and loss ratio, increasing the requirements of the win rate fourth, moving stop-loss to be meaningful position appears floating profit, is a position in the high light moment after the floating profit how to move the initial stop-loss, is a position in the The first is the break-even problem, whether to move the stop-loss position to the break-even point after specific conditions are met? If so, when should it be moved? If not, why not? The second is the trailing stop question, is it dynamic to ensure a minimum profit (even if active) as the market develops? If so, when do you move it? If not, why not? There is no standard answer to the question of whether or not to do capital preservation and whether or not to follow the stop-loss line (moving down the line), but considering this question is a mandatory lesson for traders. If it is an intraday short term speculation strategy, the requirements in this regard may be very strict and the capital preference requirements related to own funds, to withstand volatility is large enough, it does not matter, the requirements will be lenient external funds, the net value of the public, the constraints in this area naturally to be more stringent and traders Each trader has his or her own traits, and whether or not to dynamically adjust the stop loss should be considered in conjunction with the traders traits Each trader should combine his or her own personality traits to choose a strategy that meets his or her own Summary of the above four points inside: opening the entry position makes sense, preventing overtrading, impulsive trading stop-loss points make sense, truly turning the stop loss into a necessary cost, rather than simply "Stop loss" stop-loss range meaningful, improve the profit-loss ratio, reduce the hit rate requirements moving stop loss meaningful, prevent unnecessary losses appear, timely lock vested profits four points to deal with some good, better, the performance of the transaction will certainly be improved (

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