How do traders set stop loss
All practical information, concise and to the point
At the request of friends, I will tell you how professional traders set stop loss in futures contract trading.
First of all, the setting of stop loss point should not be a fixed ratio or value, but a risk prevention point flexibly set according to the price trend.
Starting from the opening of the order, whether we are long or short, there must be a logic and direction at the beginning, whether it is a breakthrough buy, a retracement buy, or a pin buy, in short, there is a direction and a starting point, so where is the most appropriate place to put the stop loss?
In fact, it is very simple. Once the price reaches the triggering stop loss point, it proves that our order opening logic is wrong, and we can stop the loss as soon as possible. For example, if my order is at the end of an oscillation range to see a breakthrough upward trend, the opening point is at the breakthrough point or the retracement point, then my stop loss point should be placed at the center or lower edge of the oscillation range. As long as the price returns to the center or lower edge of the oscillation range after breaking through the pressure line, it means that my order opening logic is wrong, and I can stop the loss as soon as possible. This is a reasonable position, and the same applies to other trend patterns.
Some people may say, what if sometimes my stop loss is just hit and then it goes up? Friends, this does not mean that this stop loss is wrong. Don't fall into self-doubt. It must be correct in the long run.
Okay, the above are all dry goods. If you haven't paid attention yet, remember to click to pay attention.
