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Why do I need a stop loss and take profit when speculating in Forex

{}Posted in2023/2/26 19:41:47 | 8Browse

Knowledge, Why stop loss? Many friends Forex rebate for Exness the beginning of cashbackforexexnesseculation in foreign exchange cashback forex very careful, so always earn some small money they often earn a few dozen points each time, but let go of a few hundred points of the big ForexrebateforExness next time the exchange rate has been very high, he often think so, I want to grasp the big market forexrebates time, I do forexcashrebate know, the market has almost reached the top of the stage want to earn a few hundred points of mood around him, there are still dozens of points of space above the market, he preferred to do Long-term, do not earn a few hundred points do not leave the field results not only dozens of points not earned, but was trapped, not win but lose the market is sometimes so tricky people Remittance friends often have such operations in the purchase of a currency, the exchange rate fell sharply, it hurriedly stop loss to leave the field exchange rate continued to fall, they are still happy! But a day or a few days, or even a few hours later, the exchange rate suddenly rebounded, rising sharply, so you can not buy again, and higher than your stop-loss price if you do not just stop loss, there are profits? This several times later, there is no concept of stop loss, the first few times to taste the sweetness of not stop loss, it is always not stop loss, that the exchange rate sooner or later to return to buy the price above the level in the trapped a few hundred points later, may not be able to resist, stop loss out of the game so that the first few times to earn a small amount of money to lose, and a loss I lectured in the class, to the friends of the exchange people to talk about the need for a lot of stop loss how to stop and stop win? When to stop loss? When do not need to stop loss? When to firmly stop loss? When to stop win? How to set a stop-win level? The most difficult thing to learn in the investment is the stop-loss is deeply lack of books on how to stop loss in the market is there, but also from a practical point of view to speak clearly to the people of foreign exchange, only a general concept, and far from the actual battle so I had the idea to write a separate chapter dedicated to stop-loss and stop-win skills, and strive to write a clear and understand the use of stop-loss and stop-win, but also operable Remember my first entry into the foreign exchange market. I met my elder brother, a once famous trader who had followed Soros in 1992 to attack the pound his first words when he saw me asked: how much are you prepared to lose to stop trading it? At that time I clearly remember, think I heard wrong, and asked him to repeat he said sternly: Im asking you, how much are you prepared to lose money to stop trading? My answer was: I came to this market to make money, many people are not in this market to make money? My big brother told me, do foreign exchange trading, is an investment to do any investment is to have a sense of risk in each industry are people lose money, some people make money, or everyone is Gates in this very high risk industry, no loss of people does not exist every person who can survive in this market, should first learn how to control risk, in other words, that is, how to control losses My big brother Tell me a story this story in my speculative foreign exchange career has given me a lot of enlightenment This is a true story story of the main character is a Nanjinger, he did foreign exchange margin trading at the beginning of the capital equivalent to 1 million yuan he continued to trade, and soon made their own funds more than 10 times at the time his mother advised him to leave a sum of money, because she knows the speculative nature of the industry and risk but this son was But the son was already bloated and thought he was a wizard in this market, making money as easy as drinking water and did not listen to the advice of others. During the month, he has been holding a long position in the pound, but also at high levels with the money earned a large number of positions held heavy pounds in mid-September 1992, for many foreign exchange traders, 1 2 next page may be hell, or perhaps heaven, a man called Soros attacked the pound, and has since become famous he successfully blocked the pound, the pound plunged Britain was therefore forced to Withdrawal from the European monetary mechanism, so that today when it comes to the pound to join the euro zone, many people still hold different views in the pound fell, this person is still stubbornly holding the pound, and that according to the conventional, the currency market fluctuations will not exceed 200-300 points a day, so the dead report on the pound not put, waiting for the rebound of the pound that know, that day the pound could not stop falling wildly in the blink of an eye, he has lost 50% of the funds At this point, if he stop loss is still too late, after all, there are still half of the funds left in the green hills, not afraid of no firewood burning in the case of so much loss, he also reported a fluke mentality, the heart thought, not so, should have rebounded to? Has fallen so much, perhaps in the U.S. plate on the rise back to the result he firmly hold the position of the pound not stop loss market does not shift to his will and the exchange rate triggered a new round of decline finally he lost severely, forced to give up because it is also his choice, his account has been completely wiped out Do you think this story is false? This story happened in my elder brother side, when my elder brother advised this person to stop many times, but he did not listen, resulting in all the money previously earned lost later, this person left the foreign exchange market, never again involved in this industry he heard the speculation foreign exchange, will be completely lost interest he returned to Nanjing, with his mother to him to save the 2 million yuan to open a company is this 2 million yuan, and make him cheer up if At that time he invested the 2 million yuan, Im afraid it will all be lost his mother is a smart person, the funds to him "stop loss" down for the future development left the back way friends, this bloody fact is not enough to educate investors? In the currency market, not afraid to be wrong, not afraid to admit it, and the market dead top if this friend in the loss of 40% when the stop loss, then he still has 60% of the funds? If you stop at 80% loss, there is still 20% of the money? Its not so bad that you lose it all, right? Still have the ability to survive in this market, right? If you lose it all, how can you survive in this market?  Friends, you listened to this story, when the market trend and their own approach to the opposite, you have to carefully observe the position of the exchange rate if many days the exchange rate in a range of narrow fluctuations, this fluctuation may be a breakthrough in the market, we can observe from the graph if this is really the case, should be timely to admit the error, immediately to roll the closing such as the trend of no signs of reversal up, then you should bear the pain of small losses to sell. To immediately leave the field to minimize losses domestic personal foreign exchange trading can only buy more, can not buy short in the dollar when the dollar rises to firmly hold the dollar, throw out other currencies in this point, novice investors are most likely to make mistakes most of them in the wrong transaction, still do not admit that their own judgment is wrong, so that follow the meticulous, and finally lead to more and more losses this is the mindset has changed, will affect the next operation, and even affect your In fact, you just didnt find a suitable method for you to operate in the currency market Remember, any investment has to pay some tuition fees, just how much is just a lot of very famous investors in the currency market, there are examples of heavy losses when they first entered the currency market, but they found the reasons for their mistakes, and try to avoid such mistakes in future transactions so that they will have gained Success friends if you want to invest in the foreign exchange market, then please first learn to control losses it Previous 1 2
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