With floating profit, close half of the position first? Or let the profits run?

The question is a bit messy, and I don't know how to answer it after reading it several times. Maybe everyone's understanding and operation are different, so I'll start with the title. Ask a question first, and it will be easy to answer it when it is clear. Since it is said that there is a floating surplus and a half, what are the conditions for a half? Under what circumstances is it equal to half? This strategy, which is not clear and seems to be better than half, will be deformed when it is implemented. If this problem is clear, then the following problems will not be difficult.

Tell me about my operation and thinking for reference only

1. Before making this order and entering the market, there will be a thought and judgment. What is the profit-loss ratio of this order? Which position can I probably get to play? (The market is unpredictable, and the next moment is always unknown. The purpose of pre-judgment is not to predict the market, but to filter out orders with inappropriate profit-loss ratios)

2. If I judge that the market is fluctuating and there is a floating profit after I enter the market, and the price does not come out of a strong trend after entering the market (the price goes up and down disorderly), then I will be at the previous high/previous Low, close some positions at the right position, and then close some positions after the price breaks through, take profit in batches, and be conservative. Because the market is in a turmoil like this, the up and down are chaotic and disorderly, and it is necessary to take profits conservatively.

If I judge that the market is a volatile market, and after entering the market, there is a floating profit, and the price has a strong trend, combined with whether the description of the overall shock is perfect, etc., I will choose to hold to the other edge of the shock, Or hold until the price repeatedly fails to break through to form a new resistance/support level to close the position.

3. If I judge that the market is a trend market, there will be a floating profit after entering the market, and the price trend after entering the market does not destroy my judgment on the trend market. Then I will hold it all the time, and add positions in positions that meet my entry principles. All orders have been held until the price goes out of the form, and when my standard for judging the trend market is violated, I close the position.

It cannot be generalized. Many people are too rigid in trading, have a single-minded mind, and have too deep thinking in forecasting. The profit-loss ratio is calculated after the event, not something you can control when you place an order. For example, if your profit-loss ratio is 3:1, and you set a stop loss of 100 pips for this order, is it necessary for the profit to reach 300 pips before closing the position? Then when the profit is 200 points, the market is about to turn, should you close the position or not?

Let me answer another question for you. In the case of floating profit, do you need to reduce your position? How can there be a definite answer to this matter? Remember, you don't want you to last forever in trading. Instead, you have to learn more, follow the market, and follow his temper. On the basis of floating profit, see if there is a possibility of reverse movement , if so, then you should reduce your position, if not, then hold your position firmly. If the reverse movement is over soon, you should add back the position you just lost; if the reverse movement is still fierce, you should continue to reduce the position, or even close all the positions. did you see? You must be flexible in trading, and you must not be too rigid. You don’t know when to increase or decrease positions at the beginning, but you have to analyze all possible situations in advance, so that no matter how it goes, You can respond flexibly, increase your position when it is time to increase your position, and reduce your position when it is time to reduce your position.

Hello, thank you for the invitation. This question you raised can basically be answered by an article I wrote before. I will write that article here again. It can be roughly divided into four situations, and you can choose according to your own different trading styles:

1. Reduction push protection:​

Advantages: It can protect at least half of the profits, and even if the market returns, it will not lose money (except for special situations such as market gaps, the same below), and there is still half of the profits in hand. Continue to move in the original direction, then there will be more profits​;

Disadvantages: The profit will shrink accordingly, and it is easy to be protected by sweeping, so that subsequent profits cannot be captured

2. Protection of non-pushing for lightening up positions:

Advantages: no loss of principal, if the market can continue to move in the original direction, there can be more profits, and it is not easy to be protected by sweeping and subsequent profits cannot be captured;

Disadvantages: ​Compared with the protection of position reduction push, the profit may drop to 0, and the same profit will shrink accordingly;

3. Protection against position reduction:

Advantages: no loss of principal, ​profit is greater than that of lighten up;

Disadvantages: ​Profit may drop to 0, and it is easy to be swept and protected, resulting in failure to capture subsequent profits;

4. Do not reduce positions and do not promote protection:

Advantages: It is not easy to be swept and protected, so that the subsequent profits cannot be captured, and the profits are larger than those of lightening positions;,

Cons: Profit may end up being negative;

Here, there is no fixed number of operations for the above four methods after reaching the profit-loss ratio, but at least after reaching the 1:1 profit-loss ratio, do not perform the above operations before reaching the 1:1 profit-loss ratio, so that It will result in small profits and big losses, and ultimately a loss.

Personally, if you are a novice, it is best to use the first three methods. After all, the first three methods are better for the protection of the principal, and relatively speaking, the psychological burden will be reduced a lot; and the fourth method, there are It may hurt the principal and cause great psychological pressure, which will cause an imbalance in the trading mentality; so the fourth method, I think, is for those veteran traders with good psychological quality.

You can make a profit by giving you a manual——Foreign Exchange Technology Research Institute is making every effort to create a mechanized trading method.

To put it simply, it depends on whether you are aggressive or moderate

Aggressive type: keep the original stop loss point, either take profit or stop loss

———————————————

Steady type: set capital preservation, mobile stop profit and stop loss

Benefits: You can earn more when you encounter a unilateral market.

Disadvantages: When encountering a short-term pullback in the market, it is easy to lead to profitable orders, because the short-term pullback is swept away and the original profit is lost

Teacher Ma Song's answer is very complete, and I recommend a more eclectic solution here.

First divide the funds into three positions, enter the market in batches at key positions that may generate opportunities, and complete all positions within 30-50 points (build most positions in the early stage of the market, and do not increase positions in the later stage), and set stop losses uniformly.

Closing is also divided into three positions.

1. When the profit-loss ratio reaches 1:1, close a position and do not push for protection. The reason is that the market is unpredictable and may reverse at any time. Although the probability of reversal is not high, from a single operation, once the probability is small, it is 100%. Put the money earned first. Put it back in your pocket.

Second, when the profit-loss ratio reaches 3:1, close a position and push for protection. At this time, the market has basically met our expectations, but it is still uncertain how it will go in the future, so the remaining positions are left to the market to express.

3. The target position of the last position is at a key position in a higher cycle (just close the position below the target, don’t try to earn the last copper plate). If the market does not reach the set key position, there will be a very obvious reversal signal ( A signal that meets the criteria for opening a position), at this time the last position of the position is closed. Attempts can be made to establish opposite direction positions. The last position is a "true risk-free" position. You will not have any pressure when holding a position. Many Huiyou always ask the question that you can't hold a profitable order. If you hold a "risk-free" order, you will still Can't hold it?

Finally, summarize the benefits of doing this:

1. Fully understand the unpredictability of the market, no matter how the market comes, we minimize the damage, and when it is time to take profits, we also fully let the profits run.

2. We don’t push the protection before the first two parts are released. We don’t care about the market’s ups and downs. Avoid excessive reading and make decisions at any time (often temporary decisions based on market sentiment are wrong, and there will be many False signal to deceive us)

3. We often have the urge to backhand after closing a position. If we close a position at one time, even if we make a big profit, if we rashly open a reverse order at this time, I am afraid that more than half of the profit we just got will be lost.

You can try to put the profit loss, so that the profit can be maximized, and the market can be adjusted or reversed in time to exit the market.

Close half of the position, and then look at the market to place an order

It depends on your personal risk assessment. Personally, I prefer to put away at least part of the profit and then continue trading the rest, so that the pressure of trading is not so great.

My operation is that I would rather hit a stop loss than leave the market early, and the profit-loss ratio should be at least 3 to 1. It is suitable!

If you consider closing your position if you have a little floating profit, you will fall into a trap of mixed success.

Floating profit shows that your current judgment is correct. Since you are correct, you should hold on to the position and let the profit run. Not only should you not reduce your position, but you should also look for opportunities to increase your position to obtain greater opportunities for profit. ​In this way, a greater profit-loss ratio can be obtained, and the losses caused by previous misjudgments can be recovered.

Adding positions with floating wins is very knowledgeable and needs to be studied carefully. If you make a mistake in adding positions, you may fall into another trap: adding positions with floating wins and losing everything. ​

If you don’t pocket your pockets, you are afraid that the market will pull back and you will lose profits or even lose money. If you pocket your pockets, you may miss out on bigger profits later on. Therefore, you feel that you can't handle floating wins and don't know when to close your position. This is a question every trader faces. When this problem arises, on the surface, it seems that I don’t know how to stop profits, but in essence, I don’t understand what floating wins are, and I regard floating wins as vested profits. More importantly, I didn't understand what I was trading, and I didn't know what kind of profit market I was after. And this thing, only experience can tell you, this experience is your vision for choosing market opportunities in the future. Before you have this experience, you have to continue to hone. Suggestion: formulate a profit-holding rule suitable for your current stage, and leave the market passively according to the rule. In this way, it is possible not to close the profit end early, and hold a larger profit. If the rules tell you to take it, you will continue to take it. The rules give you the bottom line, and you will leave the market when you touch the bottom line.

It is generally recommended to halve positions at strong support or resistance levels to protect profits

I usually choose to close half of the position first, mainly to reduce risks. I am still a person who seeks stability. Of course, you can also look at it according to different market changes. If it is clearly a bull market, it will definitely let profits run. ah

After reaching the target, close half of the position first and then set a capital preservation or profit stop loss, that is, pull the stop loss position to the entry point or the profit position above and below. Let the profit reach other goals, and then it can be directly flattened.

Previously, a trader who had adopted a strategy similar to the Turtles suddenly collapsed because he had a large loss of recent profits. He feels that the recent V-shaped reversal trend has increased significantly. After research, he found that if a part of the floating profit is locked after the floating profit reaches a certain position, part of the profit will be retained, so that the floating profit will not be fully withdrawn or become a loss.

He decided to improve his system a bit and asked me if it was a good fit.

Obviously, on this point, he didn't consider it comprehensively enough. He only focused on one angle, which was how to solve the problem of profit taking under the recent trend. It does not consider many factors such as risk exposure, the same source of profit and loss, the inevitability of the unfavorable period of the system, and the inclusiveness of the system.

I told him that it can be changed, but if you change, you will go further and further away. No matter how you optimize, there will always be market conditions that are not conducive to the system, and as long as they occur, you will keep optimizing. It will be the beginning of your intervention in the system, and you cannot output your transaction logic consistently.

After listening to it, he was dripping with cold sweat, and after reconsidering various possibilities, he decided not to change and stick to it.

In fact, if you can carefully analyze various possibilities from an overall perspective, you will find that: when you extend the trading cycle and have enough samples, all the small losses in front of you will wear out, and all the small floating profits will be wiped out in the trend Not worth mentioning after coming.

The best trading strategies are not perfect. Only those who tolerate the flaws in your system with a high-level mentality have real power and can separate you from most people.

I have made a living from trading for 13 years, and I insist on sharing dry trading goods, follow me, and let you avoid detours.

You can push the capital protection stop loss position or reduce the position to hold, even if the market pulls back, there will be profits in hand; the combination of the two methods is more effective

Trailing stop loss is solved, if the market continues to follow the market, if the market reverses, take profit and leave the market.

When the market fluctuates and reaches the target position, all positions are closed, otherwise it is easy to take profits or even lose money, and it is best to make orders in the same direction as the big cycle, and give up selling high and buying low, after all, you don’t know when the market will break through.

When the trending market reaches the first target, close half of the position. First, ensure that this transaction will not lose money. Although there may be a big profit in the later period, the transaction is based on accumulation, not just a big profit at one time; to the end of the trend.

The most important thing is that you have to judge the criteria for distinguishing trends and shocks by yourself. Personal advice, for reference only! ! !

Depends if you want to go short or long.

In the short-term, it is recommended to level half first, and set a stop loss to the next unit for the remaining half, so that at least you can guarantee that you will not lose money

For the long term, just set a stop profit and stop loss, and don’t worry about the rest

Neither is right, floating profit is the correct result of opening a position, and has nothing to do with reducing positions or running profits.

After opening a floating profit, there are stop profit and follow-up operations (including adding and subtracting positions), which are two other topics.