Wednesday, July 23, 2008

stop loss

We talked earlier about stop loss, and said that necessary action to preserve the capital of symptoms. It is the use of stop loss:

1) They must be taught good study stop loss, according to the manner in which it operates rolling. And placed stop loss either:
-- Somewhere in the line of support or resistance
-- Above or below the intersection, immediately or after a certain number of points, such as what happens with the strategies used indicator Moving Average
-- No. fixed either as strategic, such as 40 points on the chart at Broken uptrend in the strategy or, as the husband as 30 points for the euro / dollar

2) stay put with the prospect of losing, and the ability to lay off its value. Working to make any accommodation in a successful operation, in the event of failure, be able to bear the loss of the stay. If account is not likely loss of the value of the stay, it must cancel the entire operation, or reduce the size of the contract to become able to bear the loss amount of the stay.

3) we have to respect the moratorium, cancel or not budge at all, whatever the reasons, even if he sat all day in front of the screen, perhaps lost contact with him opened accounts for one reason or another, and causes more disruption of communication. We do not mean network connection, but also contact the company which then opens the account, particularly as news. It must also into account that there might shake the currency of news or flying in seconds Ferry rolling losing Bam sample can not do anything.

As we stop the loss was a major component of capital management must be given the right attention even preserved capital, the loss would be in stopping the loss while doing a gain of capital, stopped to account for the drain had been caught by requiring him if he did not put brakes.

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