Hello, stop loss means that when the book loss of the stock market reaches a predetermined amount or proportion, investors sell it in time to avoid further market decline and cause greater losses. The function of stop loss is to help investors to limit the maximum loss to a certain range, which makes it possible to obtain greater gains at a smaller cost.

Take profit refers to the operation that investors make profits in the stock market, lock in profits and terminate transactions to prevent the market from getting worse. When the market is good, investors are already profitable on their books, and continuous profit-taking can make investors obtain stable income. In a bad market, take profit can make investors feel safe and avoid the loss of falling profits.

Take profit and stop loss methods:

1. Stop loss and take profit at support level or pressure level, that is, buy and open positions at support level, take profit and close positions 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 futures trading, which is suitable for all trading strategies such as intraday, short-term, band and medium-long term.

2. Using the amount of funds as a stop loss means clearly planning how many points to lose as a stop loss before each entry transaction. This is a good fund management method, but the premise is that traders must have a winning rate higher than 60%, and at the same time ensure that the total profit point is higher than the total stop loss point. For example, if you operate 10 times a month, you gain 6 times, stop loss 4 times, the total profit is 600 points, and the total loss of stop loss is 200 points, then the result must be to win.

3. Stop loss with indicators. This indicator does not refer to the indicators provided by the software, such as RSI and MACD. Instead, it means that traders design their own indicators according to price, quantity, energy and time, and then trade according to their own indicators. When the indicator no longer has a trading signal, he immediately stops or quits trading.

4. 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.

This information does not constitute any investment advice, and investors should not use this information to replace their independent judgment or make decisions only based on this information.