Stock stop loss is to help you prevent losses from expanding, while take profit can help you maximize profits, so professional investors will have their own strict stop loss and take profit standards. Do we know which ones? The following is what the moving stop loss compiled by Bian Xiao means _MT4 Setting the moving stop loss is for reference only, and I hope it will help you.
What does moving stop loss mean?
As we all know, stock trading is risky. In order to reduce the risk, we often use a method to set a stop loss. So what is the moving stop loss used for? What is the difference between it and the general stop loss we know? As the name implies, the stop point of moving stop loss is dynamic, which is often used in spot gold, foreign exchange and futures.
Moving stop loss, also known as "trailing stop", is a stop loss that follows the latest price and sets a certain number of points. It will only be triggered when the exchange rate changes in a direction favorable to the position. It is the instruction set when entering the profit stage. Moving stop loss is a very good trading tool, especially when the price fluctuates greatly, which can guarantee your profit.
Assume that the current spot gold price is 1235 USD/oz. If you go long at this price, your stop loss is1$234/oz, and then the market follows your position and rises to1$245/oz. At this time, in order to prevent market correction or market changes, the stop loss can be changed to 1240. Even if the stop loss is swept, you are still profitable. That's what tracking stops.
How to set a moving stop loss on MT4?
Setting trailing stop in MT4: Select the order you want to set, right click → click trailing stop, then set the value you need, and the setting is successful! MT4 moving stop loss: also known as "trailing stop".
The concept of moving stop loss is easy to say but not easy to master. The selection of moving stop-loss orders is not suitable for choosing stop-loss orders that are too small and too large. Investors should be able to find a suitable stop loss category in actual combat. Stocks need to be attacked, but we must not ignore defense. On the other hand, compared with the setting of stop loss, it is time to test the investor's mentality.
If you can't concentrate on defense, you can't be a truly successful trader.
1. Stop loss and take profit at 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.
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, price type, trend line, moving average 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. In general, FXCM and FXSOL platforms can easily set stop-loss prices.
Setting methods and skills of take profit
Take profit refers to the act of selling and locking in profits on the basis of a certain profit in order to prevent the market from deteriorating. Take profit can control our greed very well. Although we can't sell at the highest point, we can also get the most important profit. Usually, it takes a long time to practice and explore the setting of fixed profit-taking position, but there are two very simple and practical profit-taking methods, which are worth trying by inexperienced investors.
1, moving take profit method
The so-called mobile take profit means constantly adjusting its take profit position according to the continuous development of the market. Let's give an example. Before it looks like a stock, we will take 10% above the purchase price as the take profit point, so when we buy, the stock price will rise by 10%, but at this time, the rising pattern is good, and the stock price is likely to rise later, so we will adjust the take profit position upwards by 65438+. The key point is to take the first position of 10% as the stop loss point. As long as the stock price falls back to the first position of 10%, it will be sold immediately and unconditionally, so that at least the initial profit of 10% can be guaranteed. Whether to continue to move up the stop loss in the later period depends on the trend of our market.
2. Profit-making method of batch moving
Suppose we buy a stock and require a minimum profit of 10%, then once the stock price rises by 10% after buying, we will sell 50% immediately, and then the stock price rises by 5%, and we will raise the profit-taking position by 2% and take the profit target before the rise as the stop loss position, so that the risk will be controlled step by step, as long as the stock price falls back to the last time.