What is the correct stop loss?

Stop loss can be divided into wrong and correct. Whether it is correct or wrong, only the trading system can measure its correctness.

When the trading system sends out a stop loss signal, it is a well-founded stop loss obtained through the establishment of the trading system in the early, middle and late stages, optimization, strategy, etc. If the stop loss is executed, it is correct even if there is a loss. If the stop loss is not executed, it is wrong even if there is a profit in the later stage.

This is not to say that the correct stop loss should be used. In the period of small funds, the established trading system should not have the intervention of stop loss. It should adopt a certain strategy to temporarily delete the stop loss from the trading system, and then add the stop loss when the funds are large. Because the small funds are small, if they cannot rise all the way, they will go up today and down tomorrow. In this way, it will take a very long period to solve the problem of the amount of funds. During this period, it is likely that there will be more downs than ups, and finally they will be eliminated by the market. Therefore, stop loss is important, but if trading under the framework of the trading system, there should not be too many stop losses, and losses should be controlled by fund management.

Another form is not to trade within the framework of the trading system. Stop loss must be strictly enforced. It will only slow down the loss of funds and will not help to make profits. The excessive appearance of stop loss indicates a fact - the profitability is not enough. This is not the time to continue trading. Instead, you should leave the market to establish and try other trading methods and system methods. At the same time, the frequent rise after the stop loss shows that the analysis of the market status is not very accurate. It is precisely the time to sell when buying and the time to buy when the stop loss is stopped. These should be solved in the trading system. The trading system mainly solves the various possibilities of rising heads, falling bottoms, rising and falling, so as to eliminate the risks and uncertainties of the market to the greatest extent.

Therefore, stop loss is not so important in the market, especially for those who strictly implement the trading system. If stop loss is frequent, it also tells us a signal - stop trading. #美国以太坊现货ETF开始交易 #比特币大会 #美国大选如何影响加密产业？ #拜登退选