Why should we stop and take profit? Advantages and Disadvantages

Why should we stop? Many of my friends in the beginning very careful when forex speculation, so the total earn a little money. They often make dozens of points each time, but let go of a few hundred points of the big market. The next time the exchange rate is already high, his heart often think, I want to grasp the big move. As everyone knows, when the market is already approaching a stage at the top. Want to earn hundreds of points around his heart, there have been dozens of points above the market space, he want to do long term, do not leave do not earn hundreds of points. Results not only dozens of points did not make, but was caught, did not win the anti-pay. Sometimes the market is such a teaser.

Meeting friends, people often have such operations. Doing more than one currency, the dollar fell sharply, a quick stop to leave. Exchange rate continued to fall, he was also pleased too! But a day or days or even hours after the sudden force the exchange rate rebounded sharply, so that you no time to do more again, and stop-loss price than you even higher. If you just do not stop, there is profit? This several times, there is no concept of stop-loss, non-stop previous tasted the sweetness, it does not always stop, sooner or later that the exchange rate to return to do more than price. After being caught a few hundred points, it may not help, and stop out. In this way, put a little money earned the previous gave now lost, and loss. I lecture, to the Department of friends say many people need to stop. How to stop and take profit? When to stop? What time do not stop? When to resolutely stop? When to take profit? How to set up win-bit only? In the investment is the most difficult stop. Deeply about how to stop the market’s lack of books. There is also no people from the actual point of view clear to the Department, only a general idea, and a far cry from actual combat. So I am on the initiation of an idea, write a separate chapter specifically about stop loss and take profit of skills, and strive to win the use of stop loss and clearly written, clearly explained, there are operational.

I remember the first time to enter the forex market, met my big brother, a once renowned trader Dealer. He was attacked in 1992, following the Soros £ GBP. The first thing he saw me and asked: How much loss are you going to stop trading? At that time I clearly remember that he is got it wrong, make him repeat it. He said sternly: I ask you, how much money you are prepared to stop out loss? My answer is: I have come to the market to make money, many people make money in this market is not it? My big brother told me to do forex trading, is an investment. Investment is to have any awareness of the risk Risk. Every industry has one loss, it was money, or else everyone Gates has. Risk in this high risk industry, there is no loss over the people do not exist. Each survive in this market people should first learn how to control risk Risk, in other words, how to control losses.

My big brother told me a story. The story in my career forex speculation gave me a lot of inspiration. This is a true story. Nanjing is a hero of the story, he did Margin forex margin trading. At first, funds equivalent to one million yuan CNY. He continued to trade, and soon turned to their own funds more than 10 times. At that time his mother persuaded him to leave a sum of money, because she knows the industry and risk Risk of speculative. But the son’s mind was already swollen, that he is a genius in this market, to make money as easily as water. Do not listen to other people’s advice. Then he impatiently to his mother two million yuan CNY. In 1992, when 2 million yuan CNY is not a small number that can be called rich. He said this is your retirement money to honor his son, and then went straight to kill the forex market. 1992 7.8 months, he has held the British pound GBP long Long position position Position, but also high with a large number of jiacang earned money. Hold Shigekura pounds GBP. In mid-September 1992, for a lot of forex transactions are concerned, may be hell, maybe heaven, a man named George Soros who attacked £ GBP, and has since become famous. He succeeded in blocking £ GBP, GBP sterling fell. Britain was forced to withdraw from the European monetary system, so join today about GBP £ EUR EUR district, many people still hold different opinions. Decline of the pound GBP, the people still stubbornly holding £ GBP, and that in accordance with conventional, forex fluctuations will not one day more than 200-300 points, so the reported death of a British pound GBP hold, waiting for a rebound in sterling GBP. I know, the day could not in GBP sterling plunged. Instant, he has lost 50 \% of the funds. Then if he still had time to stop, there is still half of the funds. Where there is life, not afraid of no firewood. The loss of so many cases, he also reported the chances, has in mind, not so to, there should be a rebound to? Has fallen so much, perhaps in the United States back up when the back plate. Result, he firmly holding the British Pound GBP positions do not stop. Market is not in his will. Exchange rate has led to a new decline. Finally, he heavy losses, was forced to give up. Because this is the choice of his helplessness, his account has been wiped out.