Stop loss of foreign exchange investment has always been an efficient guarantee for the profitability of foreign exchange transactions. In foreign exchange trading, if the quantitative indicators of trading products give a clear signal that they can be sold, then our stop loss strategy can be put on. So for the various types of traders in the trading market, which investors are more suitable for stop loss? Let's have a look.
first. Stop loss strategy can be adopted when the technical form breaks the position. For example, just like the stock market, when the stock price has been falling, falling to the key support area or going down the neck line of the bottom shape, when the convergence or diffusion triangle chooses the downward trend, and the top forms of head and shoulder top, arc top and multiple top are about to be constructed, stop loss strategy should be used. At this time, stop loss strategy should be adopted for those buying operations which are positioned as speculative (speculative buying refers to choosing stocks only from the perspective of speculative value without considering the fundamental situation of listed companies). When the original reasons for buying disappear, stop loss strategy should be adopted.
And in the face of those chase up buying operations, should use stop loss strategy. Chase up buying is to quickly obtain profits, the stock has been up to buy, if there is a judgment error, you need to stop loss decisively. If there is no such firm determination to stop loss, we can not participate in the chase.
Finally, stop loss strategy should be used for short-term or ultra short-term operations. The biggest mistake in making a short-term line is not because of the amount of profit or loss in a short period, but because of some scattered mistakes, making a shallow line into a deep set or a double set, and making a short line into a middle line or even a long line. Therefore, if you do not stop loss, is not suitable for short-term operation, let alone become a short-term master.
Similarly, for those radical investors, it is more suitable to use stop loss strategy. These investors with more aggressive operation style and operation skills can reduce the hold up cost by means of "t + 0" intraday stop loss or short-term short selling with the help of abundant watch time and sensitive intraday sense.
The above is our common foreign exchange earnings words stop loss analysis of the application of various investors, I hope our investors can get help from it, according to their investment habits to position themselves first, and then check the applicability of stop loss method.