Absolute essentials! Revealing the guidelines for setting stop loss and take profit!
In trading, the setting of stop loss and take profit directly affects profit and risk control, and must follow three core principles.
[Stop Loss Guidelines]
The essence of stop loss is to protect the principal. It is recommended to set a maximum loss limit per trade based on capital tolerance, usually not exceeding 2%-3% of total capital. For example, for a 100,000 yuan account, the single stop loss line can be set at 2,000-3,000 yuan. It is also necessary to consider price fluctuation patterns to avoid triggering stop loss due to short-term volatility. Discipline is paramount; avoid making temporary adjustments due to emotional interference.
[Take Profit Guidelines]
Take profit should balance profit space and risk. A 'staggered exit' strategy can be used: when profits reach the expected target (e.g., 5% of total capital), partially close positions and set dynamic trailing protection for the remaining positions. Another method is to set a fixed profit-loss ratio (e.g., 1:2) to ensure that profit potential exceeds risk costs. During the profit-taking process, regularly assess the market environment to avoid excessive greed.
[Key Reminder]
1. Stop loss and take profit must be clearly defined before entering a trade to avoid decision-making bias during the trading session.
2. Parameter settings should match the trading cycle - smaller thresholds for short-term trades and appropriately loosened for long-term trades.
3. Maintain adjustment flexibility; during significant market events or data releases, the protection mechanism can be temporarily optimized.
The essence of trading is a probability game; scientific stop loss and take profit can give you an advantage in long-term play. Adhere to the rules and maintain rationality to achieve stable returns!#美联储FOMC会议 