In foreign exchange transactions, loss-stopping can be carried out according to the following three methods:
Technical analysis loss-stopping method
The so-called loss-stopping through technical analysis is to tell investors the position of loss-stopping through the market, which is a correct method. The foreign exchange market will develop as it should. There are many specific ways to set loss-stopping through technical analysis.
Time loss-stopping method
Many people don’t like to take the factor of time into consideration when stopping loss in foreign exchange transactions. As long as the price falls to a certain price set in advance, purchasers will sell foreign exchange out, which is the space loss-stopping method, the advantage of this method is that you can wait for the big market by sacrificing time, however, its disadvantage is that after a long wait, loss-stopping has to be carried out, which not only causes the loss of time, but also the loss of money.
Therefore, it is necessary to introduce the concept of time loss-stopping method. Time loss-stopping is a technique designed according to the transaction cycle. From the perspective of space loss-stopping, the price may not have reached the loss-stopping position, but the holding time has crossed the time limit. In order not to expand the loss of time, purchases had better get out first.
Psychological loss-stopping method
Although there are loss-stopping techniques, they are not adopted by some investors, who believed that market forces sometimes deliberately trigger loss-stopping phenomenon, in addition, these investors generally have such experience, as soon as the loss-stopping point is triggered, the market will immediately develop in the expected direction.
For those adopting psychological loss-stopping method, important loss-stopping steps can be written down. In case the loss-stopping phenomenon is really triggered, these people will continue to observe its trend for a few minutes to judge whether it really develops in that direction, and then actually enter in the market price list to stop the loss. However, when using the psychological loss-stopping method, excellent psychological quality must be retained. If you can’t watch the market because you need to go out, you had better set loss-stopping before you go out.
