Absolute Essentials! Comprehensive Reveal of Stop Loss and Take Profit Setting Techniques!
In the trading process, the reasonable setting of stop loss and take profit is crucial, as it directly determines our gains and risk control.
According to the illustration, when an entry signal appears, we can adopt a breakout order strategy. The stop loss position should be set below the previous low point, which is like putting a 'safety lock' on the trade, effectively controlling losses when the market trend is unfavorable. Strictly adhering to stop loss rules is key to ensuring risk management.
As for the take profit level, it can be set above the previous high point. When the price reaches the preset profit closing trigger price, profits can be locked in promptly. These setting guidelines are based on the analysis of key price trend points, helping us cope with market fluctuations and maximize profits.
However, market fluctuations are complex, and these guidelines are only a reference. In practice, everyone still needs to make flexible adjustments based on their trading strategy and risk tolerance!