Accurately control trading losses: master key stop loss setting skills

Some time ago, we discussed the strategy of opening positions, so today we need to talk about the skills of stop loss. A good start is important, but knowing when to stop loss is equally key. The market is volatile and opportunities are fleeting. Stop loss can help us manage risks and prevent losses from intensifying when the trend becomes unclear.

Today, we mainly introduce the technical stop loss method, which refers to combining stop loss settings with technical analysis. After removing random market fluctuations, we set stop loss orders at key technical points to avoid further losses.

Using the technical stop loss method, the basic principle is to exchange small losses for possible greater profits. By analyzing the exchange rate trend, once a sign of breaking is found, stop the loss decisively. After stop loss, avoid blindly buying at the bottom, especially after the downward trend is established.

Technical stop loss method mainly includes:

1. K-line stop loss method:

Focus on specific K-line combinations, such as short cannons with two Yins clamped one Yang, and two Yang-yin behind Yin, or guillotines with one Yin and three lines, as well as typical top K-line combinations such as Dusk Star, Piercing Head, Shooting Star, Double Flying Crow, Three Crows hanging on the treetops. They may be signals of market turnover and stop loss needs to be set in time.

2. Pattern stop loss method:

Pay attention to the exchange rate breaking through the neckline of important head shapes (such as head and shoulders top, M head, etc.), or when a downward gap appears, it is also set to stop.Loss timing.

3. Trend tangent stop loss method:

Observe the trend line, Gann angle line or the lower track of the rising channel, etc. Once the exchange rate effectively falls below these lines, a stop loss should be set immediately.

4. Chip stop loss method:

Follow the areas with dense chip trading, which have support and resistance to the trend. Once the bottom is effectively broken down, stop loss immediately.

When setting a stop loss point, you need to look at the general trend, find the previous major marks or new highs (new lows) in the technical graph, or the market has “confirmed” more than once to make a price that is difficult to break through. Of course, you also need to constantly summarize and accumulate experience in daily operations in order to accurately find a stop loss method that suits you.