Category: Money Tips Date: 2006-01-12
In practice, how to stop-loss is indeed a technical analysis of the key issues to be resolved, one of you and I have encountered such a situation: obviously I am a homeopathic operation, but still continuously forced to stop and think again Quotes started, but set a good stop after follow-up, the price but folded back, triggering a stop-loss, and then discussed this issue again, was again out of stop-loss, and so I was hesitant when the price has started, and then come to understand, price is no longer suitable entered the picture.
So I would think that if I did not set stop-loss, or, as mentioned in the modest old chap do I find an error in one direction and then stop rather than to point and how to do stop. Way of thinking, right?
I then discussed with some examples:
a company employee, he had one of their own account, is 94-year-old market trader, and according to others, introduction, he had manipulator, very bad, blasting the few accounts. But, I have observed after the company, his trading practices is much higher than inside the vast majority of customers, I just joined the company he had just 99 years in June in soybean correction in the empty hand down a 10-sheet (he had this round of Quotes of just profit 20000) that he is precisely the kind of modest means Brother said, then the trend turned, and errors were found later, he appeared, and 30,000 yuan of funds left over 5000, this is a stop-loss the size of the .
The old chap battle-hardened, without a little frustration into the bean market, followed by a miracle, and in the mung bean The last wave of bull market, he insisted to see more than just the next two hands, a row 13 times earnings (in-band mode ) funding at last on the 20000, was the best company to operate, in this process I have been observing him, analyzing his methods of operation, I found his ideas and the majority of customers located solitary good way to stop a different approach He was and passed rally, as long as the trend has not changed no matter how volatile the price is not out of warehouses, mung beans are very powerful despite the Xi Pan, in the trend of other customers with the right will still be forced to stop the case, his method brought him a very good profit. However, the matter does not end after the mung bean rose people started to see an empty feeling aggravated, he began to empty the next single, I do not understand what reason he has gone against the tide transactions, even after a spectacular, a wrong, stop, empty once again and found that they were wrong, the second stop, after more than 20,000 of the money only after the two losses of only 4,000 yuan, and despite the adverse economic transactions are the direct cause of failure, but found the wrong appearance before The stop was originally a very common way to make two errors brought great losses, so that 13 times earnings come to naught. Surely we all know the principles of fund management, two gold, one will be limited to small losses, so that larger profits as much as possible, that is, we often say that their profit and loss ratio must be greater than 3 / 1. Second, should be limited to any part of the loss, that is, any losses should not exceed the total capital of 1 / 20 (the prevailing maximum rate). Clearly, the big stop of the way completely contrary to this principle. Moreover, who can guarantee that the stock market in this way will not make mistakes, that you think the trend started, but the results of folding back the opposite direction of the trend begun Is not commonly do, to recognize their mistakes and we have to stop , and the prices must be, has already taken a large portion of the futures market, the leverage such a high rate of losses is bound to make you, perhaps this brought to its knees, this, and no stop has been no difference between us, we can say that if I am to be modest and prudent Bud said that the way the stock market, I do not know how many die back, but just because I'm strict stop-loss, I have a chance to guarantee that my money is still there and stop is because I use many times to prove the futures market operations The first rules of survival, stop-loss is to survive, I personally strongly opposed to weakening the stop position.
Modest Brother also considered: stop-loss must be a technical stop, rather than on the point and stop, I think that first of all stop-loss should be consistent with financial management requirements, to determine the maximum affordable loss, and so to determine the technology can be approach on the points and stop points to a technical point position to determine the size of the stop-loss is not only a loss will be amplified to the degree of risk, but who can guarantee that there will be a technical point and a higher probability of success?
First and foremost, stop-loss limit the loss of any one transaction, because in every approach assumes that will happen, but not necessarily will happen, in this case, the technical stop-loss point is nothing but a hypothesis, without any positive sense.
There are so modest and prudent Brother sentence "If your systems should always stop, then state your technology is not mature, is not suitable for the survival of the market demands," My view is exactly the contrary, a regular stop-loss is a very normal, and there is a speculative master once said: I 95/100's profit is from 5 / 100 transactions created, most of the transaction is a loss, just because I'm a little profit to seize the opportunity and seize the and hold it a success.
Schwager's "Technical Analysis of Futures" Let's surprised me most is the reality in which the chart analysis: a successful trading system will actually stop such a high rate of failure far more than a profit trading transactions, the final result is still profitable.
These two examples fully demonstrate how the number of stop-loss is not the most important, the key is that you catch a profitable transaction and have it fully developed enough to withstand a huge profit losses caused by a number of small losses.
Finally, I want to say that individual investors frequently stop in the transaction is indeed widespread. But the crux of the matter is not in itself stop, but rather in the highly leveraged and volatile market, the approach difficult to choose the timing, but to no avail will inevitably lead to frequent stop-loss. But this is entirely a question of technique is entirely possible by observing the movement of its laws to solve, at least I have basically resolved. Sorry modest Brother, I'm almost against all your point of view, but it is a question of opinion, I hope you do not mind. In fact, our own views on the two opposite views are always about trade-offs between the draw, but the practice is the sole criterion for testing truth.
With regard to stop-loss is an issue which we have referred, or even to talk about not talking about stop-loss futures is a hand. What is the stop-loss, that is, to stop the loss of the book is your own to do a one-way and the market trend is the opposite of your determination to adopt a measure. Stop-loss must be a technical stop-loss, rather than on the point and stop, some people like to use so many points, stop, wait for him after the stop-loss, no or much space, followed by a wave of big move, and this When you then told him to come back to fill positions that he dare? Stop the time because of his judgments in the opposite direction is still more space. This is the blind stop the harmful effects, it was the stop that is a very important point, in fact, is to recognize the confusion, it should be in the market to survive the first one, the stop is the last protective measure is to do a single errors were found when the direction decisively deal with, if your systems should always stop, then state your technology is not mature, is not suitable for the survival of the market demand does not stop many important, but to survive in the market the most important. Treatment generally consists of warehouse receipts has done on the profit earnings and to profit-maximizing approach; to do after finishing a single callback to cover their short positions and tactics; done shortly after the single-technology systems to do the opposite issued by a single signal, regardless of profit and loss firm liquidation.
In short, the technology to do one-stop tactics, technical decency against warehouse receipts processing of the worst! ! ! To survive in the market is the first place! ! ! !
