In foreign exchange investment, there are two basic knowledge, which are very, very important. This is not technical, moving average or MACD. It is the take profit or stop loss position in our investment. Why are stop profit and stop loss positions important? In fact, in spot silver investment, we emphasize following the trend, mainly because the probability of success is higher when following the trend, but in fact, there are opportunities to take advantage of trading against the market. If we scientifically set the take-profit and stop-loss positions, it is possible to make a profit even if we trade against the market. Therefore, the take-profit and stop-loss positions are really important.
Take Profit Price
In spot silver investment, the take-profit price, as the name implies, is to stop one's own profit at a certain position, which means to leave the market with a profit. This take-profit level is a pre-set order by investors when trading. It is intended that when the market reaches the investor's profit target price, the system will automatically execute the profit-closing position to avoid missing the best opportunity for profit.
In spot silver investment, where to set this take-profit position? If you are long, you can set this target level near the pressure level; if you are short, you can find a take-profit level near the support level. Because according to the technical analysis theory, the price of gold is about to reverse when it encounters a support or resistance level.
Stop price
The stop loss price is a protection mechanism in spot silver investment, and it is also a pre-set order by investors when trading. It is intended to be a trading option established to avoid greater losses when the market is in the opposite direction to investors' buying. When the investment loss reaches the set stop loss price, the system automatically executes the order and closes the position in time.
The above two are the knowledge that must be understood and applied in spot silver investment. Only by knowing stop profit and stop loss can we advance and retreat orderly in spot silver investment. I hope it will be helpful to investors.