Of course, from the principle of capital preservation first and profit second, it is a good idea to move the stop loss to the cost price after profit, and break the cost in the worst case, but there are some details to pay attention to:
First of all, after each warehousing, the initial stop loss is very objective, based on technical analysis, but it is subjective to transfer the loss to the cost. After all, there is no technical analysis, which is based on psychological influence.
Secondly, moving to the cost as soon as possible does not mean that only a few points of profit will be lost, otherwise it will mostly be swept back and forth. As soon as possible, but "properly", when the market has been profitable for a period of time, or the small cycle has returned to the file, you can consider moving the loss.
Third, although it is subjective to transfer the loss to the cost and the initial stop loss is objective, does the market respect us? In a large number of disorderly shocks, all forms are irregular. When the cost is swept away and the market turns back, I can re-enter the market. This is called "chasing high". But is this the worst case? Have you ever been hit by a short-term stop loss eight times in a row (at that time, there was no concept of transferring the loss to the cost) and swept away the unilateral profit? This is a sad situation that most people will encounter. Based on this, it is no problem to move the stop loss to the cost price.
Fourth, but it can't move in time. This system must be able to withstand the worst. You respect the market, and as a result, you lose money 10. On the trend, the market is regular and there are many waves in the Dow, but when is there no trend? Does it still respect you? For example, after a certain floating profit, you can push the loss for the first time. You should wait until the price has passed the latest support/resistance level before you can immediately move the stop loss to the cost price. At least wait until the price has passed the latest small support/resistance before pushing the stop loss, otherwise it will be easily swept out and become a bystander.
Therefore, for moving stop loss, it should be "appropriate" as soon as possible, but the specific methods vary from person to person. Be quick and appropriate. This kind of opportunity can't be seized at once, so we should work hard. You have to make a lot of efforts to find fighters and make up for shortcomings. As for the specific "appropriate" grasp, people have different opinions, but we must not be ambiguous. Even if someone trusts someone and loses money, we should strengthen our hearts. Losing money is not terrible. The terrible thing is that that feeling will constantly impact our tenacious will.
As for the "appropriateness" of science, it is essentially a balance between odds and winning rate, and it is an eternal contradiction. For example, the daily cycle appearance and the 30-minute K-line entrance ensure that the odds are small (that is, the profit-loss ratio) and the winning rate is within the acceptable range (about 40%~50%). However, if you hit the daily line and enter the market in 5 minutes, the odds will be higher, but the success rate will be greatly reduced, which may be only 10% or even lower.
Therefore, how to master the winning percentage, odds and balance in trading is very important, and everyone's psychological endurance is different. Mastering the "degree" of your own transaction is the key!
Dennis, a famous trader, said: 95% of my profits come from 5% of my trades, and the rest of the orders are small losses and small gains. This is his "appropriateness". Therefore, even if the stop loss is moved, it is enough to make a few fake stops, but as long as one or two of them are profitable, grasp the trend.
Of course, it is your own trading system that ultimately determines your "suitability". With a clear system, basic management and psychological control are basically put away. It doesn't matter where you go, as long as you don't touch the stop loss (take profit) and keep running.
The transaction is not complicated. After a mature trading system is formed, you need enough experience and self-control. Too lazy to predict, too lazy to analyze, make orders when there is a signal, and wait when there is no signal, just like eating and sleeping. In the past, I couldn't sleep at night after making a profit of two or three thousand, but now I don't feel a profit of one or two thousand a day.