In the investment market, whether it is foreign exchange or futures, it is impossible for every investment to be perfect. The stop loss price is like a red light on the road. Sometimes you will rush past it willfully even though you know it is wrong. For example, most investors believe that horizontal resistance and support are very good positions to set stop losses, but the real market situation is sometimes not like this. Since there are more stop loss orders gathered near the horizontal resistance and support positions, so It often becomes the target of major cleaning. So what are the medium and long-term stop loss methods?

If you want to do medium and long-term trading, first of all, your stop loss point must have a previous low or previous high. A fixed-point stop loss is of little significance. The significance of a stop loss is to terminate your loss if you look in the wrong direction and make the wrong order. Under any circumstances, if you make a mistake, you are going against the trend. Set your position based on this stop loss level. You can first set a percentage loss, for example, you can accept a maximum loss of 20% of the capital each time, and then you can see how many points the stop loss level is, and decide your position based on this.

Medium and long-term stop loss method

First, the specific amount is used as a stop loss reference. After entering a transaction, calculate the maximum loss amount you can bear. According to the position situation, calculate Stop loss price.

Second, set your stop loss as a percentage. For example, if you buy gold at 1330 and stop the loss at a 1% retracement, you will stop the loss when the gold price drops to 1316.7. This stop loss method can also be more effective in avoiding washouts.

Third, use the ATR standard deviation as a stop loss reference. This technology is widely used in the field of intelligent trading. Since ATR is a reflection of the true market volatility, it is a more useful method to use 2.5-4 times the ATR value as a stop loss reference in the medium and long term.

Fourth, use the average stop loss system. We know that golden crosses and dead crosses in the moving average system are often used as market entry signals. But many people use it as a stop loss signal. Once the trend starts in medium and long-term trading, the system can set a golden cross or dead cross between a short-term moving average and a relatively long-term moving average as a stop loss point.

Fifth, using time to determine stop loss is a manual stop loss method. Specifically, when you are optimistic that a trend market will start in the next few days, but the market has not started or you have made a small profit after the time has passed. It means that the market judgment is wrong or it takes longer, then you can exit the market at this time.