Take profit is how much profit you plan to make, such as 10%, 20% or 30%. When the stock price rises to this point, it will be sold, and it doesn't matter how much it rises in the future.
If investors can do this, the probability of making money is still high. Sadly, because of greed, it is difficult for most people to do it, so most people lose. This is the root cause.
The following are some tips for setting profit-taking and stop-loss for spot crude oil.
First, stop loss according to the breakthrough support level or resistance level.
In the spot crude oil trading market, futures crude oil 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.
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, percentage correction, technical indicators, etc. To www.fxpro.cn/?. Learning ib= 1025860
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.
Crude oil trading takes the amount of funds as a stop loss, that is, before each entry, 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.
Third, stop loss with time.
Crude oil trading adopts time stop loss, which is mainly used for intraday 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. It requires traders to have good reaction ability, be able to quickly evaluate the general atmosphere and potential direction of the market, and always pay attention to the market, especially when holding positions.
Three skills of setting stop loss and take profit in crude oil trading are introduced in detail. For an investor, there are many ways to invest, but setting stop loss and take profit is the basis to ensure the safety of funds. Investors should learn to set a stop loss and establish a reasonable stop loss principle to avoid serious losses in capital accounts.