Stop loss setting is related to profit-loss ratio. It is also related to whether this order is a long-term operation or a short-term operation. In general, the profit-loss ratio should be at least 1: 1, and the maximum loss should not exceed 50 points. Cooperate with positions to control the maximum stock loss within 5%. Standard position 1, stop loss 50 points, take profit more than 50 points. Only by setting the profit-loss ratio in this way and simply improving the winning rate can we achieve profitability.
Setting skills of spot take profit and stop loss;
First, stop loss according to the breakthrough support level or resistance level.
In the spot market, futures market and other investment markets, stop loss and take profit 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. It can also be understood that when the price reaches this area, it looks very cheap, so buyers are more inclined to buy, while sellers are reluctant to sell, so demand begins to exceed supply.
Pressure refers to the area where supply is concentrated, and when the price reaches this area, the seller's power will appear. Because the selling pressure in this area is strong enough to prevent the price from rising further. When the price reaches this area, the seller is more willing to sell, while the buyer's willingness to buy is weakened, so the supply exceeds demand and the price cannot continue to rise.
The pressure support on the K-line includes: intensive transaction area, early high and low points, stock price type, trend line, percentage correction, technical indicators and so on. Pressure support on time-sharing chart: yesterday's closing price, highest price, lowest price, settlement price, today's opening price, average price, intraday high and low points, etc.
The advantage of this method is that it can make the setting of stop loss and take profit follow the fluctuation of the market as much as possible. The disadvantage is that there are many users, so there are often false breakthroughs. Therefore, when applying this method, we should be able to identify the trap and re-enter the market according to the new signal after exiting the market.
Second, stop loss with the amount of funds.
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 get this profit model, Mr. Yu Si _ thinks that first of all, we should use the risk-return ratio (generally 1: 3) to find the model, second, we should have a deep understanding of 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.
Third, 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.
Its advantage is that when the judgment is correct, it can gain profits instantly, even excess profits; When you make a mistake, you can get away with it. Stop loss is far more important than profit, because at any time, capital preservation comes first and profit comes second. After understanding how to treat stop loss correctly, investors should develop good stop loss habits, so as to avoid risks in the market and minimize losses, thus making themselves invincible in the natural gas investment market.
Remember to never deviate from the trend after setting a reasonable stop loss point. When you decide the market trend, follow it and ignore your thoughts, hopes or fears, and you will not succeed. Follow the law to determine the trend, and don't trade with speculation and hope.
The stop-loss methods of spot or futures are mainly the above three. Because the risk of the spot market is generally greater than that of the stock market, it is more important to set up a stop loss position. After some stock speculators enter the spot futures, they naturally do not pay attention to stop loss in the stock market, and the result is huge losses.