Stop loss after the important support level or resistance level is broken: this is the most commonly used operation mode in actual combat. The proportion of investors who stop at this position is very high. However, a careful analysis of foreign exchange charts at home and abroad shows that in the foreign exchange market, the price trend often reverses after the resistance level or support level is broken.

Stop loss after the absolute amount of loss reaches: At present, this is the stop loss method adopted by many excellent foreign traders. The key point of its operation is that the maximum loss of funds for setting up entry points is generally 5%-20% of the occupied funds, or it can be the absolute amount of occupied funds, such as 100 yuan per lot. Once the loss limit is reached, stop loss and leave immediately regardless of the price.

Stop loss after reaching the limit of self-tolerance: this stop loss method is commonly used by novices. GCT Cheng Hui reminds you that using this stop loss method in short-term operation will still help to improve the yield. In fact, some excellent foreign traders often use this method.

The specific method of use is: when your position loses money, as long as you can bear it, you can hold the position, otherwise stop immediately, even if it is a newly established position.

Personally, I think this method is suitable for intraday short-term trading, but also for experienced traders in the market, while novices often shake out at high and low levels when using it.