In the stock market, I believe everyone has heard of stop loss, but trailing stop may not be familiar to many novices. Therefore, it is still necessary to understand. So what does it mean to follow the stop loss? The following small series will briefly introduce the relevant information to the novices of stock trading, hoping to give you some help.

What does trailing stop mean?

The meaning of trailing stop is based on stop loss, which can be understood as an upgraded version of stop loss. Widely used in foreign exchange, futures, gold, stocks and other transactions. It means that after we buy, we set a stop loss position, and once we make a profit, we will raise the stop loss position. By constantly improving your stop loss, you can lock in the profits you have earned and ensure the profits of your investment to the greatest extent. Trailing stop is similar to moving stop loss in stock trading.

Trailing stop can only be carried out when we are profitable. For example, when Zhang San buys a stock at the price of 5 yuan and sets the stop loss position as 4.5 yuan, it means that the stock price drops 10% to trigger a stop loss. However, after Zhang San bought the stock, the share price kept rising, and soon it rose to 6 yuan. At this time, our previous stop loss of 4.5 needs to be adjusted, for example, to 5.5 yuan.

In this way, the profit of buying stocks is locked at 10%, that is, the profit of 0.5 yuan per share. Then the stock price continued to rise to 7 yuan, and Zhang San once again adjusted the trailing stop position to 6 yuan, thus locking the profit at 20%. After the stock price rose further, it began to fall back. When the stock price fell back to Zhang San's stop loss position in 6 yuan, Zhang San immediately closed his position, thus earning 20%.

What is take profit and stop loss?

Take profit refers to the operation of selling stocks at a profit, and stop loss refers to cutting positions with losses, which is essentially a selling strategy. Take profit or stop loss are based on the same principle. The so-called profit and loss homology is what kind of buying corresponds to what kind of selling. The logic behind it must be the same. For example, if you buy a stock because the trend is certain or good, you should sell it when the trend does not meet expectations or deteriorates. Whether it is profit or loss, then profit is called take profit, and loss is stop loss. It's that simple.

There is no uniform standard for the setting of take profit and stop loss, and investors can choose according to their actual situation. Generally speaking, stop loss is more important than take profit. Investors should pay attention to stop loss and ensure the safety of principal. Compared with standards, it is more important to implement them. If investors want to achieve the unity of knowing and doing, and the stop loss position is set, they must stop the loss in strict accordance with the rules, and they must not be lucky.

How to set the stop loss for mobile phone mt4?

Secondly, inform trailing stop of the significance: after the automatic function of MT4 is successfully set and takes effect, the MT4 terminal will constantly refresh the market data to ensure that the distance between your stop loss price and the highest point in this market (which is beneficial to your direction) is set for you; In other words: trailing stop's set distance is actually the maximum distance for a single callback. As long as you don't exceed the number of points you set, you won't open a position, which is very suitable for making some unilateral quotes.

Clarify the conditions for effective implementation.

After 1. is successfully set, it will take effect if and only if the order profit is greater than the set allowable callback points, and the stop-loss price will be automatically modified; If the profit does not exceed the set number of points, it will not take effect; Therefore, it is suggested to set up trailing stop only if the order has a certain profit.

2. The MT4 terminal should always be connected, and the computer/network /MT4 should not be turned off; If the line is dropped, the trailing stop is invalid and stays at the last stop-loss price.