Most investors often ignore the importance of exit in trading, so what are the ways to exit futures? Let me introduce it to you below.
In the process of market operation, investors can choose their own exit methods, and Financial Manager divides them into three types: active exit, passive exit, and stop-loss exit. Any exit method can achieve the purpose of profit.
1. Take the initiative to take profits
Most of the reasons why investors take the initiative to take profits and leave the market are because they have a goal. This goal enables traders to actively close positions to reduce position risks and lock in speculation. income. But on the other hand, you will only get small profits and lose the big market.
2. Passive take-profit
Passive take-profit exit refers to passive exit through the pre-set take-profit price when the futures price reaches the take-profit price. goal. In the passive take-profit operation, the setting of the take-profit price may be very blind, because the prediction of the top and bottom may not be accurate before the price reverses. However, if the take-profit price made in advance is not changed in actual combat, it will not be easily affected by futures price trends.
3. Stop loss and exit
Stop loss and exit are also very common. When futures prices fluctuate within a wide range, the direction of the fluctuation is elusive, and sometimes it is common to choose the wrong position direction. Although stop-loss operation is a method to reduce investors' losses, it stops losses when investors suffer losses. Even if no one likes to stop loss and leave the market, an appropriate stop loss price must be set in advance to reduce the risk of reverse positions. In actual combat, the stop loss and exit operation method can greatly reduce the extent of investors' losses. A prudent investor will inevitably set his own stop loss level before entering the market in order to lock in speculative losses and preserve the vast majority of funds.
Of course, we need to clearly understand that any exit method has its advantages and disadvantages. What we have to do is to minimize our losses.