In the spot crude oil market, futures crude oil market and other investment markets, profit is made by stop loss at support level or pressure level, that is, buy and open positions at support level, sell and transfer at pressure level, and stop loss below support level after buying, and vice versa. This is the most commonly used stop-loss and profit-taking method in commodity trading, which is suitable for all trading strategies such as intraday, short-term, band and medium-long term. The premise of using this method is to judge the support and pressure comprehensively and accurately. I also made a courseware about the support and pressure of spot market analysis, so you can learn it together. Support refers to the area where demand is concentrated, that is, the gathering area of potential purchasing power. Because the demand in this area is strong enough to prevent the price from falling further.

2. Amount of funds for stop loss:

That is to say, every time before entering the market, it is clearly planned how many points to lose as a stop loss. This is a good fund management method, but the premise is that traders should design their own profit-taking points and stop-loss points in combination with their own winning rates. For example, if you operate ten times, gain five times, stop loss five times, take profit 120 points, stop loss 50 points, then the result must be winning. How to obtain this profit model, first of all, we should use the risk-return ratio (generally 1: 3) to find the model, second, we should deeply understand the fluctuation of market operation, and third, we should make a comprehensive judgment on market trends such as trend direction, trend type and trend development period.

3. Stop loss with time:

This method is mainly used for intra-day ultra-short trading mode. Intra-day ultra-short mode refers to the trading mode in which traders hold positions for as few as a few seconds and as many as a few minutes in order to obtain the price difference of several or dozens points in a certain period or part. For this model, the trading principle is to make use of the influence of the external market, the breakthrough of the support level and pressure level in the market, the false breakthrough and the sudden news to make a profit.

This method has low risk. If the judgment is wrong, at least you can guarantee no loss or save a small amount of profit. If the judgment is correct, you can get rich profits, even more. However, this requires traders to have good coping ability, make accurate judgments effectively and quickly, and evaluate the development trend of the market on the premise of maintaining a high degree of concern for the market.