Especially the communication. Medium and long-term operators can set moving stop loss instead of taking profit. Short-term, especially ultra-short-term should set a profit-taking goal. In principle, take profit is greater than or equal to twice the stop loss. For example, the stop loss is 30 points, and the general profit cannot be less than 30 points. Then we consider the influence of communication. In my opinion, take profit should be at least ten times the spread. In theory, the bigger the difference, the better, to offset the adverse effects of platform spreads.
Some novices may think that the spread doesn't matter, for example, the euro is around 2 points. This is a big mistake-unless you are a long-term player. Take me for example. I have tens of thousands of operations at present. According to rough statistics, there have been at least100000 operations. Every time you pay the difference of 2 points, 654.38+ one million times is 200,000 points. Even if the value of an integral is calculated according to $0.65438 +0, 200,000 points is equivalent to the difference fee of $20,000! Have you worked out how much you paid? I thought you might be surprised.
Therefore, as a long-term trader, we must consider how to reduce transaction costs. Then a basic rule is that take profit is at least equal to spread 10 times. Based on the rule that the take profit should be more than twice the stop loss, it can be concluded that the stop loss must be more than 10 times the price difference. Otherwise, long-term trading will bring you extremely unfavorable consequences-such consequences are irreparable by technical analysis.
Let's talk about actual combat. Assuming that the euro spread of your platform is 2, you can easily calculate that your stop loss setting should not be less than 20 points and your take profit should not be less than 20 points. If you operate ultra-short term and make a profit at 10, it means that one-fifth of your profit is taken away by the platform. And when you lose 10, it means you lose one fifth more. This is a very bad profit-taking strategy.
But in fact, many novices want to run away after making a little money. It's okay to make one or two orders. Doing too much is to do coolies for the platform. The spread of oanda Euro I use is basically around 1.2, so my stop loss is usually at ten o'clock, sometimes dozens of points, but it will not exceed 50 points. If you make pounds, the spread of pounds is about twice that of euros. Suppose your pound spread is 4 points, then your stop loss should be at least 40 points, not 20 or 30 points like the euro. If you think that the price difference is only two points more, the impact is not big, then it is all wet. The setting of stop loss and take profit is a multiplication relationship with the price difference, not a simple addition and subtraction relationship. When the spread doubles, both stop loss and profit will double. Instead of adding two points to the spread, you add two points to the stop loss.
To make a profit, you should at least learn from successful traders and do the following 10 things well:
1 No matter how much profit, successful traders always keep an eye on losses and try their best to control them.
No matter how experienced and skilled, successful traders know that they may face financial losses or even short positions.
? Be sure to master a certain trading method or strategy.
Never let emotions affect trading decisions.
When trading, they will flexibly adjust their trading strategies and methods according to changes in market fluctuations.
They will definitely plan the size of their positions and when to deposit or withdraw funds. This is the key to the deal.
Their trading methods are very suitable for their own style.
In order to make the transaction successful, they did enough analysis before the transaction.
Be satisfied with your trading methods and methods.
10 They have the ability to bear the biggest risk of capital loss.
Similarly, traders who lose money are similar. Their behavior patterns are more like gambling than trading. A perfunctory attitude determines the result of failure. To improve these, you can try to do the following:
1. trade according to the probability of loss, not the probability of profit, so be sure to manage the account well.
2. consider your own financial situation, trade in small positions, and don't take too much risk of loss.
3. Deal with it in a planned way, and don't get emotional.
4. only accept the best trading opportunity, don't listen to other people's opinions to make a transaction.
5. trade according to your own analysis, don't be subjective.
6. Don't make a deal after full investigation, and don't be ignorant, otherwise the deal will be as disorganized as gambling.
7. Choose the right position to trade, always focus on risk management, and profit is only the second.
8. Any transaction that may lead to losses should be avoided, not because of excessive trading.
9. Trading must have principles, and you can't suddenly change the trading method after continuous profit or loss.
10. Evaluate the current market objectively, and don't feel bad because of previous profits or losses.