I have been unable to set the stop loss in the transaction, how can I do a good stop loss?

In the process of forming this trading routine, I have also been troubled by whether it is a single-cycle stop loss and take-profit, or a large-cycle stop-loss and small-cycle take-profit, or a small-cycle stop-loss and a large-cycle stop-profit, or a large-cycle judgment direction and a small-cycle stop Loss and take profit.

Each of the above paths can be followed, and each has its own advantages and disadvantages at the beginning. I won’t talk about the disadvantages at the beginning. You need to see its advantages at this time. The prey of your future trading routines will come out of these rough advantages.

Stick to only one way, and in the end you will find this way to maximize strengths and avoid weaknesses. At this time, you basically have your own trading routine.

In fact, each road has its own personality. If your personality does not match your external conditions, it will be very awkward to walk. Sticking to one path is actually running in, and running in must mean changing oneself or fine-tuning the road. The running-in process is painful, but the result is comfortable.

Trying different paths will take a lot of time at the beginning, and there are too many choices, so it is easy to get confused. This stage of "more confusion" is basically unavoidable for novices. Some people have a pure heart, like Xu Sanduo, who can take whatever path they are given and insist on only one path. This kind of person will find one path faster than those with mixed thoughts, but the disadvantage is that it may be this path It doesn't fit me very well, there will be a ceiling in the future, and breaking through the ceiling will also lead to a painful process of rebirth from Nirvana.

I am a person with mixed thoughts. If I don’t try other paths, I will feel unsteady. But after I chose the path back then, I never changed it. In the next few years, I didn’t break through the shocks. This stage was very painful, but every order I traded was in line with the path of small cycle stop loss and large cycle stop profit, any order. The construction of the trading system is like the formation of sedimentary rocks. The sediment is deposited layer by layer. The lower it is, the more stable it is, and the higher it is, the easier it is to change. Change and change, and it will gradually become fixed. How can the trading system be built if there is no fixed thing precipitated.

After walking out of this road, I found that the above roads can be walked. Momentum is the key. These roads are entrances. When you come in from this entrance, you will gradually understand that these roads are essentially the appearance of how to fit yourself into the momentum. From the form of matching the potential to find out what the potential is, and when you understand what the potential is, you can take any road at this time, because the road is just an external form of matching the potential. But you have not reached this stage, you still need to choose an entrance to come in honestly, and walk along a road.

The essence of stop loss is to seize the opportunity and fail.

A transaction is assembled from two components, one called direction and one called timing. You have judged the direction through the technical analysis of the large cycle, or through the fundamental analysis, you think that this variety will go in one direction in the future. You know that it is going to rise, but you don't know when it will rise and where the timing is.

Timing is reflected in two things in trading, one is time, and the other is price space. Both of these can be obtained from charts and fundamentals. Of course, not every time. Every time you seize the opportunity, it is trial and error. The way of trial and error is to stop loss. If there is no stop loss, it is not called trial and error, that is, it does not matter whether judgment is right or wrong, there is no standard for judging right or wrong, there is no rules in the transaction, there is no rules, and usually it will operate according to the original human nature, carry the big loss and run with a small profit Lose.

You don't know the timing of the rise. At this time, you have two options, one is to stop the loss. A large stop loss also means that it can tolerate a longer time and a larger price position, and it is a bet on the timing of rising in this long-term and large-scale space. Stop loss and big stop loss, in essence, expand the space and time attributes of timing.

One is to place a small stop loss at the timing of speculation. Timing, because it is a point, means an extremely short time and an extremely small space. In trading, this is called a time point and a price point. The bet is that the position of this small point, such as the position of 123 in the above picture, will rise, or there will be a rise at a certain data release time point. Once this small point does not appear, stop the loss. From this kind of thinking, there are stop loss by time, stop loss by space and stop loss by feeling. You read the first rule in the gift of the ghost, and you experience it, is this the trading idea?

Space and time, in terms of transactions, are approximately equal to the price cycle level. The essence of small-period stop loss is to grasp the timing within a small range. If you don't know why you have a small stop loss, then you must have not figured out what level of opportunity you are grasping, and it is difficult to accept a small stop loss. Once you understand that you are seizing the opportunity, you will calmly accept the existence of a small stop loss, instead of a big stop loss and a small stop loss, in exchange.

The understanding of when to seize the opportunity is also the reason why I can settle down. Even if I frequently stop losses in small cycles, I still insist on small stop losses. At the beginning, I thought that with the improvement of my experience, the timing would become more and more proficient, and the frequent stop loss would be reduced through experience. Looking at it now, this idea is not wrong, and experience is also very useful. However, it is not the fundamental solution. The fundamental solution lies in "potential".

Large cycle stop profit and small cycle stop profit also correspond to different logics, you can think about this for yourself.

First of all, we must understand the function of stop loss, limit the amount of this loss to a small range, and ensure that there is enough principal to make profits to make up for the loss in subsequent operations.

Because the topic is too single and there are no other conditions, I will add some conditions to answer this question.

1. A single speculative stop loss. If you are an opportunity watcher, if you hear that gold will skyrocket in the near future, and do not fully understand the market information, you will generally buy when the market price starts to rise, and set the stop loss at the previous low point. The problem is that, How to judge through the selection of information that the set previous low point will not be touched in the future, then it is a successful purchase.

Of course, there is another situation that after setting the stop loss, the price is hit by the stop loss, and then the price continues to rise, that is, the so-called direction is right, and the stop loss is still there. At this time, the judgment system needs to be corrected. Or there is a way to make up for it. The ability to judge the direction is still good, and the odds of winning are not bad, but you often stop losses, so you should work hard on position management. For example, after judging the direction, the first stop loss amount is limited to a small amount. If the range is wrong, the price will continue to follow the direction of judgment and continue to enter the market. The key to making money in this method is to get out of the trend after the main force enters the market, and increase the operation to obtain higher returns. The disadvantage is frequent stop losses. It is difficult for novices to accept this method of killing confidence and patience, but it is still an effective method used by many Wall Street asset managers.

2. The stop loss of the trading strategy system. A strategy system includes judging the entry position, including the method of stop loss line and take profit. If it is set with a high probability of winning, then the logic of the stop loss position is the starting point of the main institutional funds, usually the probability of being touched again Smaller, which can reduce losses. The TB strategy is this type of top-hunting and bottom-hunting. By the way, some people don’t bother to buy tops and bottoms, or don’t buy tops and bottoms. I can only say that you have never seen Victor’s top-hunting skills. I don't know that all institutions enter the market by hunting for tops and bottoms.

3. Don't set a psychological stop loss. In the process of contacting retail investors, speculators' fluke psychology and unsystematic trading often make them set stop losses, but before the price is about to stop loss, they choose to cancel the stop loss line, so they find it difficult to set stop loss. After many times of liquidation, I realized that it is better to stop the loss and keep the green hills.

4. The same source of profit and loss is the basic logic. How much loss you are going to take to gain profit is the concept of profit-loss ratio. Mathematically, after 20 transactions, your profit minus your loss is your profit. How to design this model can objectively view the possible The loss that occurs, the loss is part of the transaction, that's what it means.

5. The best way to set the stop loss is to analyze the transaction based on the combination of volume and price, and discover the main force's actions. Generally speaking, after many real main force funds enter the market, they will not destroy their own stop loss, unless it is hunting Stop loss, most of which have not studied this level, often become the prey of institutions, that is, become hunted stop loss behavior.

A reader told me today that he would never trade gold again.

I asked her why?

She said: If gold rises, you will be trapped, and if gold falls, you will be trapped. Although it is not a loss of money every time the quilt is covered, but one set after another is too painful! Our IQ is still there, let’s just go and speculate in stocks honestly.

I asked her: Then you won't be caught in stock trading?

She said: I also get quilts, but not as frequently as gold ones.

I said: well, good luck. But in the end, I still want to tell you that since gold is no longer speculated, stocks should not be speculated either. If you want to avoid problems, you should avoid them thoroughly. It may be appropriate to go to the bank to deposit money honestly.

I don't know if I have listened to my last words, but I am wondering why so many people are always caught in the process of gold trading. This is not an isolated phenomenon, because I often meet readers who come to consult. How to solve the problem is the most problem I face, which can be regarded as some experience. Among these people who consulted about unraveling, some were lucky enough to exit the market without loss, and some gave up treatment after huge losses. Regardless of the results of these people being trapped in gold trading, after a period of time, most of them will come back and ask how to solve the problem. .

After all, it is not a solution to treat headaches. If you don’t cut off the wrong trading methods, you will end up being trapped. Therefore, in order to fundamentally solve the problem of being caught, we must first understand what kind of wrong trading method caused this problem.

So what is the wrong trading method that caused us to be caught frequently in gold trading? I think that at least three of these operations are fatal operations that often occur in gold trading, and these three operations are interlocking and endless.

One, the transaction is based on feeling

The gold market fluctuates all the time. We sit in front of the computer and watch the market, and these fluctuations become a tease for our emotions. Once gold rises, it will give you a feeling that it will continue to rise a lot, and when gold falls, it will give you a feeling that it will continue to fall a lot.

Not every time such a feeling will lead us to trade by feeling, but what if it rises continuously? What if it rises for three consecutive days or falls for three days? It is very likely that we will make a move, or chase the rise, or kill the fall, or just the opposite. The direction of the transaction is not important, what is important is that these transactions are all based on the flow of consciousness trading based on feeling, which is an instinctive reaction led by market fluctuations, and this reaction is the beginning of our failed transactions, because we make transactions based on feeling The transaction is unfalsifiable, which paves the way for the next fatal operation.

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Second, the stop loss is illogical

Facing a person trapped by the market, the first thing we usually complain about them is how not to stop losses. Yes, stop loss is the only way to control risk in gold trading. But is just stop loss useful? A stop loss that cannot be executed is just chicken soup and meaningless.

Why do most people end up with no stop loss? The reason is simple, the stop loss lacks logic. When deciding to trade, you may have a certain trading logic, either based on technical analysis or fundamental analysis, there is no problem. The key point is that when you set the stop loss, you abandon these, and only focus on your own cost or psychological endurance, which makes the stop loss setting out of line with the market logic, resulting in frequent stop loss or being slapped in the face. The stop loss is simply abandoned, and the stop loss without logic is equal to nothing.

Many people say that stop loss should consider one's own psychological endurance. This seemingly correct sentence is precisely a fatal mistake. The setting of stop loss should not consider the psychological endurance, but should consider the conditions that the market logic is denied. In fact, this condition has nothing to do with the psychological endurance of the trader. The market does not depend on anyone's will, does it?

Can the psychological endurance be ignored? Of course not, it's just that it should not be dealt with in the link of stop loss, but in the link of position size. We cannot control market fluctuations, but we can choose how many chips to throw on the table. But it's a pity, because many people make mistakes when it comes to stop loss. In fact, most gold traders don't know how many chips they have thrown out during the transaction process.

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Three, eager for quick success, give up the learning process

Anyone who knows how to play mahjong knows that after a game of mahjong is played, whoever wins and loses will be calculated after the game is played. Earn money, but also have a butt. No one wins from the beginning to the end once he is on the table. If there is such a person, then we must suspect that he is cheating, because this is not in line with the laws of nature.

Similarly, gold trading is a continuous process that requires learning and developing trading skills. This process consists of each buying and selling transaction. These transactions seem to be independent, but at the same time they are connected and affect each other. It is impossible for anyone to make money every time, and it is impossible to lose money every time. Therefore, what gold trading pursues is to be able to make a profit over a period of time rather than making money every time.

If you can only see every transaction of gold but not the continuous process, and pursue every transaction to make money, then the final result must be to be locked in by the market. Because you are bound to do it wrong. Therefore, what evaluates the level of a gold trader is not which one makes money, but the level of profit for a certain period of time, and the longer the period of time, the higher the gold content of the profit!

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Author: Kim Seung-ho

Learn the correct trading ideas and grasp the market trends in advance!

As for stop loss, anyone who is a veteran in foreign exchange trading will set it, so you really need to understand it well. Stop loss is a question that is often mentioned by everyone, and even talking about foreign exchange without talking about stop loss is out of control.
First of all, what is a stop loss, it is to stop the loss in the book, and it is a measure you take when you judge that your order direction and the market trend are opposite. The stop loss must be a technical stop loss, not a point stop loss. Some people like to use as many points as the stop loss. When you ask him to cover his position again, will he dare? Because when he stopped the loss, he judged that there was still a lot of room in the opposite direction.
This is the harm of blind stop loss. Some people mention stop loss to a very, very important point. In fact, it is a confusion of understanding. It should be the first to survive in the market. If you find a wrong direction and deal with it decisively,
if your technical system needs to stop losses frequently, it means that your technology is immature and not suitable for the survival requirements of the market. It is not so important to stop losses, but the most important thing to survive in the market.
The processing of warehouse receipts is generally divided into profit-making and profit-maximizing methods; after the order is placed, the strategy of finishing the callback is used; shortly after the order is placed, the technical system sends out the opposite order signal, regardless of the profit and loss. warehouse.
In short, stop loss is a tactic for technical orders, and it is the worst policy for processing warehouse receipts in the technical system! ! ! Survival in the market is the first! ! ! !

You already know how to set a stop loss, which is very commendable! Many foreign exchange people don't know whether they are too confident or something, and never set a stop loss, let alone study how to set a perfect stop loss!

Before answering how to set a stop loss, I still want to advocate the importance of a stop loss!

In a sense, a suitable stop loss point is the tranquilizer and the last straw in the transaction!

The stop loss point refers to setting a price level to automatically close the position according to the maximum loss allowed by the trading position. No matter how experienced traders make mistakes in judgment, the significance of the stop loss point is to verify our mistakes in judgment and help us reduce losses. The trading market is unpredictable, and trend reversal may occur at any time. Traders at any stage must develop the habit of setting stop loss points and make judgments before entering the market!

So how to set a good stop loss? The most commonly used in the industry is to judge by support and resistance levels. In addition, other methods can be used for verification . For example, stop losses can be based on resistance and support levels, Bollinger bands, and ATR techniques, or you can use limited funds and limited time to stop losses. Let’s talk about it in detail:

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Set stops based on support and resistance levels

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When introducing resistance and support levels, we said that the stop loss point is set below the support level and above the resistance level. In fact, just in case, the support and resistance levels are broken. Here is the general idea of ​​setting the stop loss point, but it is set below the support level, where is it below?

For example, the picture below shows the trend chart of AUDUSD. In the nearest support level area, the stop loss point is set below the support level. Someone may set the three red lines in the figure or even more undrawn lines. Set the stop loss point .

Obviously, if you are long, choose the stop loss point corresponding to the last line, the transaction will not trigger the stop loss point, and wait until the trend rebounds to go short, without affecting the profit and loss;

If you choose the stop loss point corresponding to the second line, before the transaction starts to rebound, the stop loss point will be triggered to automatically close the position. At this time, the trader is buying high and selling low, and is in a loss state; The position is earlier, and the loss is relatively small;

If you choose the stop loss point lower than the last line, judging from the current k-line chart, the stop loss will not be triggered, but imagine if the market price breaks through the support level, is the stop loss point the lowest point away from the support level? The closer the better, the relatively less loss.

Therefore, the key to setting a suitable stop loss point is to first judge the support level and resistance level accurately, and then predict whether the support or resistance is strong, the market price shock cycle, and find the lowest point below the support level and above the resistance level.

Set Stop Loss Through Market Volatility

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The stop loss set by this method is mainly used to prevent premature stop loss and exit within the normal fluctuation range of the market . Determine the volatility and trend of the market, set a stop loss outside the volatility range, and leave enough trading space for yourself.

first move

The specific method can use the Bollinger Band indicator, because the channel formed by the upper and lower rails of the Bollinger Band can reflect market price fluctuations, and the larger the channel, the greater the market volatility.

The figure shows the Bollinger Bands indicator on the AUDUSD daily chart, and the volatility of the market is increasing. If you choose to go long at this moment, you can set a stop loss outside the amplitude, as shown by the red line in the figure.

second move

At the same time, the ATR indicator can also be used to measure the volatility of the market, so as to set the stop loss . ATR is Average True Range, which is an oscillating indicator, which can be added and used in MT4 software.

The larger the ATR, the greater the market volatility. If you don't want to leave the market prematurely, the stop loss position should be farther away from the entry price. When the market fluctuations are relatively stable, the stop loss should be closer to the entry price, which can respond to market fluctuations in a timely manner.

As shown in the figure above, the ATR indicator on the AUDUSD daily chart shows that the market fluctuations have been relatively stable recently, so the stop loss point can be closer to the entry price, which is smaller than this fluctuation range. For example, you can set a distance of 30 from the entry price. point position.

In addition, you may also see stop loss points set according to time and amount . In fact, this is similar to pending order transactions, which limit the transaction time and set a transaction price according to the amount of risk that can be tolerated. This way of setting stop loss is somewhat out of the market, and it is easy to be forced to leave the market because the stop loss point is too close to the entry price, or too far away to cause heavy losses, so it is not recommended! ​

Of course, for novices, you can also use a risk-free stop loss method . After setting the stop loss position according to the technical method, if the market trend moves in a direction that is beneficial to you by a certain amount, generally regarded as 2%, you can Raise the stop loss level to the cost level, which is a risk-free stop loss position.

But remember, using a risk-free stop loss position may leave the market prematurely, and you will not be able to make a lot of money. It is more suitable for novices who are just starting to try and make mistakes in the market!

Finally, note that although the stop loss can be adjusted after it is set, it is best not to adjust it . The stop loss is set based on your analysis and judgment. It is likely that you will be affected by emotions halfway, and you will expand the stop loss when the market situation improves. You can manually close the position when you are guaranteed to make a profit, but don't touch the stop loss position!

Author: Master of Hui Classroom

Source: Wechat Public Account Hui Classroom​

1. How to set stop loss and take profit under the trend market:

What kind of level matches what kind of stop loss, for example, if an order is placed in the market at the 1H hour level, then the search for the stop loss and profit point should also be found in the 1H cycle.

As shown in the red diagram below, when making a downward trend continuation order, the stop loss point should be placed above the previous horizontal line.

For the setting of the take-profit point of the trend market, you can refer to the trend channel. For the trend short order made on the upper edge of the down channel in the figure below, the take-profit point can be set near the lower edge of the channel.

If the follow-up market is shown in the red picture below, and the stop loss is swept away, it means that the previous judgment is completely wrong, and the right way is to admit the wrong stop loss for empty orders, and carrying orders will only exhaust you physically and mentally.

Because the current breaking wave has appeared, the head and shoulders bottom has been formed, and the follow-up is an opportunity to go long

2. How to set stop profit and stop loss in volatile market

The stop loss point of the shocking market can refer to the high and low points of the previous shock, which is slightly higher than the high point and slightly lower than the low point, so as to avoid sweeping the stop loss due to the stabbing market.

The stop profit point also refers to the position of the previous low and the previous high, or is slightly lower than the previous high, and slightly higher than the previous low.

Key point: The first position of short-term take profit is to look at the recent high and low points

3. In the retracement model, set a stop loss with reference to Fibonacci

For example, if you enter an empty order at Fibo 61.8, the stop loss can be set at about 10-20 points above 61.8 to prevent the market from sweeping losses.

You must regulate your own order-making behavior. If it breaks, stop the loss directly. You cannot manually increase the stop loss.

If you continue to be short in the follow-up, you can wait until the previous high before placing a short order.

Summarize:

Before placing an order, it is necessary to clarify the purpose of placing an order, whether it is a short-term market that is trembling, or a trending market,

Do you want to do long-term, mid-term, short-term or ultra-short-term, if it is the latter, then you must enter the market decisively when you reach your goal.

Even if there are hundreds of market points in the future, it has nothing to do with you. If you are doing trend market, then you must hold on to it decisively, and don’t get out at one or twenty points.

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Welcome everyone to my official account: Asa Community FXMAP to learn foreign exchange technology together​

Why set a stop loss!

Who spread the operation of stop loss? Think carefully about where did your stop loss money go? Who most wants you to set a stop loss? Let me just say that every transaction you make is with your platform provider. You are the counterparty. If you use this platform, you are only qualified to do transactions with this platform. Every long order you make The platform merchants are selling to you, and every empty order you make is bought by the platform, which means that the platform earns all the money you lose. Of course, every take profit you make is also a loss for the platform. But in the end you always lose money, why? Because everyone is using the theories, technologies, and methods created and disseminated by the platform to form their own trading systems. These theoretical and technical methods themselves are conspiracy. It is strange that a trading system based on such factors can make money!

AI Quantitative Trading is a trading system oriented by fund management and risk control, with the core of obtaining excess return algorithm. It is very suitable for the foreign exchange market with high volatility, and the annual profit is expected to be 3-5 times

The answer above is very accurate, I would like to ask a question here. In actual operation, how to stop loss is indeed one of the key problems to be solved by technical analysis. You and I have encountered such a situation: I am obviously operating with the trend, but I am still forced to stop loss continuously, thinking that the market is going to stop again. It started, but after setting a stop loss to follow up, the price folded back, triggering a stop loss, and then follow up, and was out of the game by the stop loss. When I was hesitating, the price started, and then I understood, The price is no longer suitable for entry.
Therefore, I would think, if I don't set a stop loss, or as the modest and prudent man said, I will stop the loss when I find that the direction of the order is wrong instead of stopping the loss by pips. Is this the right way to think?

The fundamental purpose of stop loss is to prevent major events, although even major events will also cause loss, but it is a minority.

Our entry and exit have a fixed form. When entering the market, we have established a stop loss form, and we will exit when we arrive. Wait for the profit to exit the form.

Setting a bad stop loss means that you still have the habit of losing money!

If you want to set a reasonable stop loss, you first have to see what your profit expectation is and what time period you take. The profit-loss ratio should be more than 1:1, preferably greater than 3:1. These ratios are not mechanical, you need to judge according to the chart, and the commonly used ones are the high and low points near the previous period.

I think the stop loss must be a technical stop loss, not a point stop loss. I think that the stop loss should first meet the requirements of fund management and determine the maximum tolerable loss, so as to determine the technical entry Points and stop loss points, using technical points to determine the size of stop loss will not only magnify the loss to a dangerous level, but who can guarantee that technical points will have a higher probability of success? The most important point of stop loss is to limit the loss of any transaction, because each entry is only assumed to happen, but not guaranteed to happen. In this case, the technical stop loss point is just a hypothesis, without any Affirmative meaning.

No stop loss, and then, place an order of 0.01 lots, and only make one order per week

What I want to talk about today is the indispensable stop loss when making orders. Stop loss is nothing more than two points, nature and idea! Many people will wonder what skills can be used to place orders and stop losses when they see this, so please read on patiently! Let’s first introduce the nature of stop loss.

The nature of the stop loss! What is a stop loss?

Many people have a superficial awareness of this and don't know how to set a stop loss, so it is better not to set a stop loss. This is the biggest disadvantage of doing foreign exchange; to put it bluntly, stop loss is a way out for yourself when you do something wrong, and the same is true for foreign exchange. Setting a stop loss is to protect yourself from liquidation , Prevent the expansion of losses! A direct factor in minimizing risk and maximizing profit. Many people come from the stock market to the foreign exchange industry, so they apply the thinking of the stock market to foreign exchange. If this is the case, it is a big mistake.

The reason is two points

First: Because many people do foreign exchange because they lose money in stocks, it is generally because they have a bad attitude to lose money in stocks. Therefore, it will directly affect the foreign exchange business. The mentality is very important. If the mentality is not good, it means that half of the loss has been lost. Therefore, we must not bring the thinking of the stock market to foreign exchange. If you want to do foreign exchange, you have to start from scratch.

Second: Forex is different from the stock market. Stocks can be sold without loss, and stocks can be kept for decades without loss. This is not the case with foreign exchange. If foreign exchange is not sold, the interest can deduct all your funds. So I still have to say, don’t bring the thinking of the stock market to foreign exchange. In the final analysis, we still have to talk about the importance of stop loss, and stop loss when it is time to stop loss.

The idea of ​​​​stop loss!

The stop loss is generally set at the nearest pressure position for short orders and the nearest support position for long orders. When it comes to this point, it restricts the thinking when making orders. This has a lot to do with making orders. In layman’s terms, for example: if you want to make a short order, the stop loss should be set near the nearest pressure position when the profit is only 50 points. And the nearest pressure position must be set at 40 points, so it is best not to do this order. This is a robust approach. At this time, some people don't understand, think! Why not do it? We must have a concept that the minimum ratio of stop loss and profit margin is 1:2. According to a reasonable approach, if the stop loss is 30 points, then the profit margin must be equal to or greater than 60 points before operation. Foreign exchange is a probability. If you get big, you can make a profit. small loss

The setting of stop loss is very subjective. You may add a stop loss at the beginning. In fact, you will artificially cancel the order when you are close to the stop loss point, and then fall back even more, increasing your loss, or even liquidating your position. Personally, I think that it is enough to fix at an acceptable point. I set the stop loss in trading at 6 points, and the maximum loss will not be liquidated.

Stop loss is the bottom line, there must be a closed system for psychological support, otherwise stop loss three times will make you doubt your life.

One simple and effective way to set a stop loss is to place it below the lowest point of the last three candlesticks for a buy trade, and vice versa for a sell trade. This is because the last three candlesticks can give you a good indication of the current trend.

If you are not comfortable with the stop loss setting for a particular trade, you can also place it beyond a support or resistance line. This will give you more breathing room, but it also means that you could lose more money if the market moves against you.

This method works best in trending markets, where the price is moving in a clear direction. It is not as effective in narrow ranging or choppy markets, where the price is moving back and forth without a clear trend.

Here is an example of how to use this method to set a stop loss for a buy trade:

Identify the last three candlesticks on the chart.

Place your stop loss below the lowest point of the last three candlesticks.

Enter your buy trade.

If the price of the asset moves below your stop loss price, your broker will automatically sell your position to limit your losses.

It is important to note that this is just one way to set a stop loss. There are many other methods, and the best method for you will depend on your individual trading style and risk tolerance.

Stop loss is the biggest lie in the market. Those who take the maxim of cutting losses and letting profits run as a golden rule are destined to be losers in the market.

I don’t stop losses in light positions, and only stop losses in heavy positions. How to set it depends on my confidence. If I have enough confidence, I will increase it.

It may be better if you don’t have this talent. If you choose to play the piano to surpass Lang Lang, giving up is the best choice. Just do what you are good at.