A fan asked, why do floating profit orders always stop loss?
In essence, you always have such frequent stop loss because you don’t know where to leave the market. I will give you a very simple clause. You must close at least half of your target position. This principle is very simple, but many people can’t do it, or even understand it. I am obviously close to the target position, why do I have to close half of it? Can’t I reach it after waiting a little longer?
But what I want to tell you is that this market is not a simple painting problem, right? It is not like drawing a beautiful rectangle. If it doesn’t hit, it will never touch you. But whether it touches or not does not depend on you, but on whether your opponent, the trader, will make a mistake.
So no matter what, when you are right, you must prevent some situations that do not meet expectations and lead to additional losses. When you can get a relatively good return, the closer you are, the more you have to think about how to keep it, so that we can derive a series of technical skills later.
Then in my trading system, measuring the target position is a very basic action. Don't always explain to me that you should hold on and let the profit run. Can you chase it from behind? Or is there any way to make it not turn back? I don't have this ability, and neither do the dealers.
You know what is the most difficult point for the dealer to control, that is, where can he exit steadily. So when we know that our self-discipline can hedge this kind of risk to a certain extent, you must seriously implement this discipline.
You are nothing more than retreating half, not making a penny, but it is also a tie. If you have reduced the risk, you let it run a little and let it reach a target position, then there is no problem.
You need to absorb this philosophical logic of lowering the risk of trading. If you absorb it well, you can make hundreds more this year.