Take profit (take profit/take profit), also called take profit. -is to ship at your target price, and stop loss is to ship at a price at which you can bear risks and losses. The concept of take profit should be closed when it is good and should not be maximized. The center of thought is a "stop", thought determines action, and the methods of stock trading are essentially different. The key to profit is to find good opportunities. When an opportunity arises, seize it at the first time. If you miss it, let it miss it (the key to whether you can renew it). Find another opportunity. Seize the opportunity. When the opportunity has a signal of transformation, let go for the first time. ...

What does stop loss mean?

Stop loss refers to an order that is closed when the loss of an order is higher than the loss price you set. Stop loss is a point limit. When the stop price is touched, the order will be closed. Please note that when setting the stop-loss price, you need to reach a certain stop-loss distance on the basis of the current price. When the market trend is unfavorable to you, setting a stop loss can reduce your loss. The stop loss point is always set below the current buying price of multiple orders or the current selling price of empty orders.

How to stop profit and stop loss in foreign exchange;

Controlling risk in foreign exchange trading is profit, and the setting of stop loss and profit is related to the control of risk and profit. After the traders have made a detailed analysis of the market and determined the trading plan, the rest is the execution of the trading plan. Stop loss and take profit are the most important links in trading execution.

So how to set stop loss and take profit? The most intuitive learning is to look at the case analysis and check the way to get the settings.

Case study: shorting euro/dollar

In the chart below, the EUR/USD shows a downward trend. The price has hit the downtrend line many times, which is a good resistance level.

Short-term orders can be placed under the downtrend line (1.3690). Stop loss is set at 1.3800, and take profit at 1.3530 and 1.3450.

Trading orders are triggered, and the trend line remains unchanged when resistance and prices fall. Your first profit target

The second profit target is a little short, but by that time, you have adjusted your stop loss to break even (you have entered the short position), so you have nothing to lose.

Four Mistakes in Setting Take Profit and Stop Loss

① The setting range of stop loss is too narrow.

When setting a stop loss, we should consider the volatility of currency pairs and the possibility of wandering around the entry point for a period of time.

For example, suppose you make more pounds/yen at 145.00 and your stop loss is at 144.90. Even if your forecast is correct, the price will rebound from this area, which may still be 10- 15 points lower than your entry price, and then increase again, possibly to 147.00.

② Stop loss setting is based on precise points.

It is unwise to use "XX point" instead of technical analysis to set a stop loss. We are in the trading market, so it makes more sense to set a stop loss according to the market trend.

③ The stop loss range is set too wide.

Too wide a stop loss will increase the number of points that the exchange needs to move. The general rule of thumb is to put the stop loss point closer to the entry point than the profit target point.

④ Set the stop loss at the support line or resistance line.

Stop loss cannot be set too narrow or too wide, but it cannot be set only at the position of support line or resistance line.

If you want to do more, you can find a closer support level below the approach and set a stop loss in that area.

If you want to short, you can find a close resistance level above the approach and then set a stop loss in that area.