Do you know the importance of stop loss

This is a common topic. What is the nature of stop loss? Guangxi Haidu Investment Development Co., Ltd. You, stop loss can be said to be the bottom line of principles that traders must abide by. The self-discipline of stop loss execution is a necessary condition for traders to gain a foothold in the market. There are many versions of the survival principle in the futures market, many of which are personalized concepts, and only stop loss is the general principle.

Generally speaking, when a trader faces a loss, there are two main situations where the stop loss will not be executed:

There is a stop loss position before the order is entered, but the stop loss position is not stopped.

This is usually when it comes to stop-loss positions, due to market slack, due to market repetition, it causes paralysis and fluke. Some are because it does not anticipate that when the stop loss is reached, is it possible to withstand such a large monetary loss?

There is no stopping loss, no money left.

This is a mistake that novice traders can easily make. After several times of lightening their positions, the principal suffered heavy losses, but then they just did not stop the loss and resisted.

For the trader's behavior, once the stop loss position is reached, once the execution is abandoned, then the trader's way of thinking will change. As the market evolves but cannot act, risks are completely exposed to the market and follow the trend. Although he is also paying attention to the market, he has been paying attention to the next support and resistance levels, and he has seen most of the details. After this unconstrained behavior of relaxing the bottom line occurs, the basis for supporting traders' positions has actually become the support of emotional factors such as hope, hoping that the reversal of the market will be beneficial to them and thus make them profitable. Hope to replace objective behavior is tantamount to gambling luck. Due to the repetitive nature of the market, a trader can make 99 times as long as he can't resist playing it all at once. Which one is worth figuring out by yourself.