Stop loss and take profit, that is, buy at support level, sell at pressure level, stop loss below support level after buying, and vice versa. This is the most commonly used stop-loss and profit-taking method in commodity trading, which is suitable for intraday, short-term, band and medium-long term.
Wait for all trading strategies. The premise of using this method is to judge the support and pressure comprehensively and accurately.
Support refers to the area where demand is concentrated, that is, the gathering area of potential purchasing power. Because the demand in this area is strong enough to prevent the price from falling further. It can also be understood that when the price reaches this area, it looks very cheap, so buyers are more inclined to buy, while sellers are reluctant to sell, so demand begins to exceed supply.
Pressure refers to the area where supply is concentrated, and when the price reaches this area, the seller's power will appear. Because the selling pressure in this area is strong enough to prevent the price from rising further. When the price reaches this area, the seller is more willing to sell, while the buyer's willingness to buy is weakened, so the supply exceeds demand and the price cannot continue to rise.
The pressure support on the K line includes: intensive transaction area, early high and low points, price type, trend line, percentage correction, technical indicators, etc.
Pressure support on time-sharing chart: yesterday's closing price, highest price, lowest price, settlement price, today's opening price, average price, intraday high and low points, etc.
The advantage of this method is that it can make the setting of stop loss and take profit follow the fluctuation of the market as much as possible. The disadvantage is that there are many users, so there are often false breakthroughs. Therefore, when applying this method, we should be able to identify the trap and re-enter the market according to the new signal after exiting the market.
Step 2 use
Stop loss for the amount of funds: that is, before each entry transaction, clearly plan how many points to lose as a stop loss. This is a good fund management method, but the premise of using it is that traders should combine their own winning rate.
Calculate your own stop-loss point. For example, if you operate ten times, gain five times, stop loss five times, take profit 120 points, stop loss 50 points, then the result must be winning. How to get this profit model, we must first be able to
Use the risk-return ratio (generally 1: 3) to find the mode, then deeply understand the fluctuation nature of market operation, and comprehensively judge the market trends such as trend direction, trend type and trend development period again.
Step 3 use
Time stop loss: this method is mainly used for intraday ultra-short trading mode. Intra-day ultra-short mode means that traders hold positions for a few seconds or more in a certain period or position in order to obtain the spread of several points or dozens of points.
Zhong's trading model. For this model, the trading principle is that the price changes dramatically in an instant under the influence of some factors, such as the influence of the external market, the breakthrough and false breakthrough of the support level and pressure level in the market, and the sudden news.
Fast forward and fast out can make a profit. Its advantage is that when the judgment is correct, it can gain profits instantly, even excess profits; When you make a mistake, you can get away with it. It requires traders to have a good response.
Ability requires traders to quickly assess the general atmosphere and potential direction of the market, and requires traders to always pay attention to the market, especially when holding positions.