Take profit is how much profit you plan to make, such as 10%, 20% or 30%. When the price of crude oil rises to this point, it doesn't matter how much it rises after it is sold.
In the field of international investment, the setting of stop loss and take profit is the basic operating rule. If it can be used reasonably, it can greatly reduce the trading risk of investors and protect profits. The setting of stop loss point is also very important. If the take profit setting is low, the profit will be less. If the take profit setting is high, the market will not go up and the list will not be closed automatically. If the market reverses, it will immediately turn into a loss.
Regarding the setting of stop loss points, according to my years of experience in spot crude oil analysis and guidance, the following three points can guarantee investors' maximum profits:
1, stop loss according to the breakthrough support level or resistance level. This method is mainly suitable for short-term operation in the day, and the support level and resistance level are set according to the large period. Once the support level is broken, the stop loss will be eliminated, which can effectively avoid the risk of expanding losses.
2. Use the amount of funds as a stop loss. That is to say, every time before entering the market, 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. It requires investors to have a deep understanding of the fluctuation nature of market operation, and it is difficult to master market trends such as trend direction, trend type and trend development period.
3. Stop loss with time. This method is mainly used for intraday ultra-short-term trading mode. The advantage of this method is that when the judgment is correct, you can get profits instantly, even excess profits; When you make a mistake, you can get away with it. Traders are required to have good reaction ability, be able to quickly assess the general atmosphere and potential direction of the market, and always pay attention to the market, especially when holding positions.