Category: Money Tips Date: 2006-10-04
In the previous article, I often talked about the stop-loss on the issue, has also been a series of articles about disguise the importance of stop-loss, namely, "a beautiful mistake the beautiful mistake." Today, I come to talk about locking a single issue. Lock when the first single from the futures and later, as the development of financial derivatives transactions also apply to other products, in a period of time can be described as extremely prosperous. Lock alone is truly an investor trades in futures contracts or other financial products, when the market is the opposite trend with its own operations, the opening of the new with the original position opposite positions, also known as pairs of locks, Lock. Locking a single operation is now quite popular, and in many investors just entering the foreign exchange market is also in his opinion is a very good way. In many foreign exchange trading platform is a big fanfare of a single lock, and the beauty of this feature as a selling point. Hedge really propaganda so well? Is not true. Now I give you brief details of a single lock.
Lock is generally divided into two kinds of situation in which profit and loss Lock Lock. Profit Lock trading of futures contracts that investors have a certain margin of profit fluctuations, investors feel that the trend had not changed, but the market may be short-lived return to block or rebound, investors do not want to pay the original low-cost or from land sales in a single easy to open positions, they continue to hold the original position at the same time, in the opposite direction to open a new warehouse. Lock losses that investors trading of futures contracts to a certain degree of floating losses, investors see the market outlook unclear, but do not want floating losses into actual losses, they continue to hold the original loss-making positions at the same time, the opposite direction to open Lixin warehouse in an attempt to lock the risks. Whether a profit or a loss of a single lock lock single-use methods and principles are the same, so in essence there is not much difference, both are wrong.
Lock the greatest harm is the paralysis of a lot of investors risk control, and believe that there is no problem letting go stop-loss, big deal I would lock a single loss. Over time, stop the menu has become a decoration. If you from the financial investment markets (in particular the foreign exchange market) or long-term stability and success in profits, they must invest in the trading discipline and psychologically to scrap the idea of using a single lock. War soldiers playing your amazing speed, in the foreign exchange is also not adversely affected by aircraft. The stop's necessary to stop the first time, absolutely can not be dragged on to the end can only be forced to face the dilemma of position unwinding or a detonation. As the saying goes good: Xie maker people.
Lock "easy to knot easy solution", especially the loss of Lock. As Lock operation will seriously affect the trading mentality, with the simultaneous buying and selling two-way operation of the number of positions, there will be some psychological pressure. Therefore, investors will have a certain time in unlocking the psychological burden, it is inevitable indecisive, confused, often miss the opportunity warehouse solution. Sometimes, even if the wound and solution of the warehouse, but the fear of loss of positions in another direction increases, emboldened enough, after all, the slightest sign of trouble, then re-Lock, Lock completely into a vicious cycle. May ultimately huff, long-short positions unwinding at the same time, floating losses into actual losses eventually, but also in vain missed a lot of investment opportunities to come back really hurts. After all, the Lock "easy to knot easy solution," also "should not knot solution." Do not use self-deceiving way deceive ourselves! If the key technical bits will stop early and do not need such a good set of difficult.
Risk control is always the first and easiest way to control risk is to stop, stop the implementation of good or bad decisions of your trading discipline, trading discipline, good or bad thing is that you deal directly affect the success rate and rate of return.
