The foreign exchange market is a risky market, and its risk mainly lies in too many variables that determine the foreign exchange price. Although there are many books on the principle of foreign exchange fluctuation, some study from economic theory, some from mathematical statistics, some from geometry and some from the perspective of psychology and behavioral science, the fluctuation of foreign exchange market still often exceeds investors' expectations. For investors and operators in the foreign exchange market, it is necessary to have a little knowledge in all aspects, so as to fully understand the relationship between risk and income, winning or losing. With this knowledge and understanding, we can better control risks.
When it comes to risk control, the first thing that people may think of is to set a stop loss, but risk control is not simply how many stops are set. Someone once asked how many stops were reasonable. In fact, stop loss is not a matter of how many stops are set, but a matter of improper and unreasonable control. I believe that everyone has encountered such a situation. When you buy a currency like others, others have set a stop loss of 30 points, but you have set a stop loss of 50 points. This is the key, because you have not judged the strength range of the market, you can also say that you have not grasped the timing of entering the market. You buy in the upper stage of the market rise, and others enter the market in the middle and lower stages, so of course the safety factor of others is greater than yours. Therefore, it must be emphasized again that the stop loss does not lie in how many points, that is, there is no difference in the size of this risk, only we can control it reasonably. Perhaps, some people think that as long as the loss is controlled within the range that they can bear. I don't object to this, but if there is a way to keep the loss to a minimum, why don't we do it?
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