The three laws of the currency circle:
1. Set and strictly adhere to stop loss;
2. Be skeptical of all information provided it does not conflict with the First Law;
3. On the premise that it does not conflict with the first two laws, choose a trading method that is easier to falsify.
But if you want to quickly get a stop loss reference, you can refer to the following three items:
The proportion of your own assets invested in the currency circle shall not exceed 10%;
Daily trading losses shall not exceed 20% of currency assets;
The loss of each transaction shall not exceed 30% of the daily stop loss.
For example, now that you have 100,000, please invest up to 20,000 in the currency circle; if you lose 3,000 (i.e., 15% of 5,000) in daily transactions, stop immediately, and please allow yourself to lose up to 1,000 (i.e., 5% of 20,000) in each transaction. .
After stopping the loss, no matter how good the opportunity is, don’t take action, because if your judgment of the opportunity is accurate, you should make a profit that day instead of a loss. Since you hit the stop loss even if you lose, it means that your judgment of the opportunity that day is correct. Irrational.
The significance of stop loss is to retain ammunition so that you have the capital to make a comeback in the face of opportunities; at the same time, as the most important part of trading discipline, adhering to stop loss exercises willpower and is also beneficial to future trading when gaining profitability. execution ability.
Everything in the currency circle is bankrupt and even heavily in debt because there is no stop loss (especially the high risk and high return of contracts)
Don't be next.
Always remember to stop your losses. This trading discipline overrides any other opinion or behavior, even independent thinking.
