Volatility and unpredictability are the most fundamental characteristics of the market, the basis of the existence of the market, and the causes of risks in trading. This is an unchangeable feature. There is never uncertainty in trading, and all analysis and prediction are just a possibility. The transaction based on this possibility is naturally uncertain, and the uncertain behavior must have measures to control its risk expansion, so it produces a stop loss.
Futures stop loss skills:
1, stop loss and take profit with 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. The premise of using this method is to judge the support and pressure comprehensively and accurately.
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.
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. For this model, the trading principle is to make use of the influence of some factors, such as the influence of the external market, the breakthrough and false breakthrough of the support level and pressure level in the market, and the sudden news, to make a profit in the case of sudden and large fluctuations.