65438 +0, risk is not equal to danger. In fact, there are many such examples in our real life. For example, driving on the road is risky, but not dangerous. Who dares to drive on the road in danger? Is it risky for us to fly? There must be risks, but that doesn't mean we can't fly. Doesn't mean there's danger. If there is danger, we will definitely not fly, and so on. Today, the teacher should correct the view that risk is not equal to danger.
Second, the purpose of stop loss is to prevent risks. Prevent small risks from gradually evolving into big risks, which will lead to major financial losses, economic losses and even short positions. I think many of our previous transactions were like this. At first, a little loss was not so fatal. It is because we changed our stop loss or didn't stop loss at will that we caused great wealth risk. I believe that each of us has this experience.
Third, stop loss is to correct the mistakes that have occurred, because in the actual trading process, we can't be correct in every transaction. In other words, not every transaction is profitable, and every transaction may be risky, so the purpose of stop loss is to correct the mistakes we have made.
Fourth, stop loss must be a safe stop loss. Safe stop loss includes two aspects. 1 aspect is the safety of funds. What is capital security? In other words, when trading a certain variety, we must control the risks before doing it. It is also assumed that once this loss becomes a reality, whether we can afford it is to control the loss of total funds. Another aspect is that the safety stop loss must be objective and reasonable. What is objective and reasonable? That is to say, when we set a stop loss for the variety we operate and the target of the transaction, our stop loss must be set outside the market fluctuation range of the current time period. For example, if we go long at the daily level, then our stop loss must be outside the fluctuation range of the daily level in the recent period, that is, a little below the current fluctuation range and a little above the current fluctuation range. Only in this way can it be more objective and reasonable. Without objectivity and rationality, our stop loss often loses its meaning, which is not called stop loss. Stop loss is set for stop loss.
Fifth, there is right or wrong stop loss, and there is no right or wrong stop loss.
I hope our investors can re-understand the significance of stop loss to our trading according to the above five points, and I believe it will be of great enlightenment to your investment trading. Finally, the teacher should emphasize that when trading, we must guard against risks, always put risks first, and guard against risks, so that we can win the future. Good luck with the transaction, thank you.