#止盈止损
Divided into two scenarios: 1) Single Transaction and 2) Holding Position
1) Single Transaction Take Profit and Stop Loss:
Relatively simple,
Prioritize stop loss,
Set stop loss points around comprehensive resistance and support levels,
Then combine with the psychological loss limit for the single transaction,
Take the smaller value, the aim is neither to be easily shaken out,
Nor to prevent the situation from getting out of control,
At the same time, even if unexpected events occur, it should not affect the mindset.
Take profit is the same with psychological take profit level and technical take profit level,
First determine the take profit point near the support or resistance level,
Then look for a take profit point that feels comfortable to you,
Take the minimum of the two.
If the comfortable point is higher than the technical point,
Then consider whether it's worth opening a position;
Only when the technical reference point is higher than the comfortable point,
Is it worth initiating a transaction.
The take profit and stop loss ratio should generally be greater than 1,
1.5 or above is quite comfortable,
If the win rate is extremely high, consider going below 1,
But when making small profits and large losses, one must acknowledge this is the result of the choice.
Generally, technical take profit and stop loss levels are relatively easy to grasp,
It just requires more observation, learning, and practical experience,
With effort and diligent study, it can generally be done well.
The difficulty lies in finding your psychological take profit and stop loss points
And internalizing them through practice.
2) Holding Position Take Profit and Stop Loss:
Also known as psychological take profit and stop loss,
When the account gains or loses a certain amount,
The mindset begins to change dramatically.
One must have a clear self-awareness,
Otherwise, it is easy to fall into an emergency state,
Unexpected irrational behavior may occur,
Greatly increasing the possibility of blowing the account.
This cannot be solved by any experience or reasoning,
It requires repeatedly honing one's mindset,
This is an understanding of one's own humanity,
It is about how we understand ourselves
And the art of how to deal with our greed and fear.
When you feel that your position has reached a point where you begin to have various crazy thoughts,
Learn to instinctively say stop,
Close all positions with one click,
Shut down and force a break until you get out of that crazy state.
Take profit and stop loss are extremely important parts of trading,
Once you pass this hurdle,
You can effectively prevent blowing the account
And continuous losses in the account.
I hope to encourage everyone,
Starting from not blowing the account and no longer continuing to lose money,
Enter the door of qualified traders.
