How to deal with frequent stop loss in forex speculation
Often tell people: stop loss should be done often. Even novices can not set profit times, but they must do stop loss once a week. Fall in love with stop loss and get used to it, so they are not afraid of stop loss. Because stop loss is part of the trade. It's easy to lose all the profits without knowing the stop loss.
But recently I met some friends, which made me have to recognize this problem again. If a stop loss is too frequent, I think there may be no problem in his understanding of stop loss, but there may be problems in dealing with stop loss.
The problem is not the stop loss itself, just like a woman who often gets sick. It doesn't mean that she doesn't get sick when she becomes a man, but there may be problems in her diet or living habits. If you change these, you can be as healthy as others. If the stop loss is too frequent, you have to look back at the stop loss behavior again.
First, how often? If you stop losing continuously within a few days, it means that you may have problems with your overall thinking, so you have to quit. Suspend trading for a period of time.
The second is to see how many times the stop loss comes back, that is, to fall, and then stop the loss. After the stop loss, the exchange rate returns to the target. At this time, it is not your thinking that has a problem. On the contrary, it should be said that your thinking is very correct, but there may be a problem with your stop loss range or entry point. At this time, it is not the stop loss itself that needs to be adjusted, but your position building point and risk bearing width, that is, your stop loss point width may be enlarged.
Therefore, in the face of frequent stop loss, we must first examine the two situations, and then deal with them differently.
First, most of the exchange rates still fall after the stop loss. Check your thinking at this time. You must be bucking the trend.
Second, after the stop loss, the exchange rate returns. It seems that the stop loss is specially for you. At this time, the stop loss width should be adjusted, or the position of position building should be refined, such as delaying one to twenty points as usual.