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Is it better to stop loss at the stop-loss price that breaks through during the day or at the stop-loss price that breaks near the closing price?

In fact, this question involves the issue of true and false breakthroughs, that is, in trading, there will always be such a problem. What should you do after your stop loss price is penetrated? But I personally feel that this kind of problem cannot be regarded as a tangled problem for a mature trader.

First of all, when you trade futures, your stop loss is set in advance. That is to say, when it comes to the stop loss price, the transaction is completed directly, and the above problems do not exist. If you really have the above entanglement, it can only mean one problem, that is, your stop loss is not strict enough. During your operation, the stop loss order may move up or down. This is taboo in futures trading.

The second reason is why we can’t stop the loss when it is close to the closing price? The reason is simple, that is, if it is a real breakthrough, it may wait until the closing price in the future. You have already lost 20~40% of your principal. But if you break the stop loss, you may only lose a little capital. Although sometimes you encounter a false breakthrough, causing you to stop the loss by mistake. But what does it matter? We will always have better opportunities to enter the market. But if the principal is gone, there may really be no chance.

In short, when doing futures trading, the stop loss line must not gradually move upward, because the stop loss line is the lifeline. Holding the stop loss line means guarding your principal. We would rather stop the loss wrongly 10 times than hold on to the order once. The market never lacks trading opportunities.

Wish you all good luck with your investment