Risks in the investment market are objective and universal, and the same is true for spot gold trading. As a typical international trading product, during the spot gold trading process, people must flexibly respond to market changes and strive for profit margins. Setting stop loss is an effective measure to prevent risk expansion, so how should gold speculators set stop loss efficiently?
Stop loss is also called meat cutting, which means to close the position promptly when the loss reaches a certain level to reduce the loss. Sometimes stop loss is not used properly and will not only fail to play its due role, but will also cause greater losses.
On the one hand, people can determine appropriate stop loss points based on the trends of gold technical charts in different time periods. Common methods include K-line stop loss method, moving average stop loss method, etc.——
1. K-line stop loss method
Including the appearance of two yin and one yang, the yin followed by two yang and yin, or the appearance of the guillotine with one yin and three lines, as well as the appearance of evening star, piercing head and foot, shooting star, two flying crows, and three hanging crows. Typical peaking K-line combinations such as treetops, etc.
2. Moving average stop loss method
Generally speaking, MA10 can maintain the short-term trend, MA20 or MA30 can maintain the mid-term trend, and MA120 and MA250 can maintain the long-term trend. If investors buy on the lower track of an upward channel, they wait for the end of the upward trend before closing their positions, and set the stop loss position near the relatively reliable moving average. Once there is an effective fall below MA20 and it cannot rise again within 3 days, you should stop the loss immediately and exit.
After mastering the method of determining the stop loss point, people must also avoid some misunderstandings in the stop loss setting process. Random and blind stop loss cannot achieve ideal results, but will greatly reduce the function of the stop loss itself.
Therefore, once investors complete the stop loss setting after opening a position, they should not easily change the original loss position no matter what developments and changes the market shows. Only in this way can the stop loss function in the gold investment process be truly brought into play.
The function and role of stop loss and the determination of stop loss price during specific operations require a solid theoretical foundation as a basis. Investors can use the Internet and other channels to Take the initiative to learn, strive for greater market profit space for yourself, and enjoy more fun in the spot gold investment market.