In the gold investment market, setting a stop loss is very important. The most important element of gold speculation: stop loss, but in practice, investors often cause huge losses because the stop loss is not established scientifically. How to determine the stop loss point in spot gold? How to find the most reasonable stop loss point? How to use the Bollinger Bands indicator to analyze the best stop loss point?
- Opening and stop loss skills
Opening up represents the rapid development of the market. Although investors hate the volatile market and like the trending market, the market often comes in abruptly. After the confirmation is found, the market will enter the market. Since the stop loss is too large and does not meet the profit-loss ratio, it is difficult to decide whether to chase more. or chasing.
However, after understanding the principle of Bollinger Bands opening, you only need to set it slightly above the middle rail, because once the gold price breaks through the middle rail when it pulls back, it can be confirmed that this wave of wide opening is fake, and the sooner you come out, the better. .
- Closing and stop loss skills
When the Bollinger Bands indicator enters the closing stage, the previous market trend will temporarily come to an end, and the market will enter a reversal stage or a temporary correction. If you have a compound position, it is recommended to close half of the position. If the market outlook breaks through the middle rail again, it is better to close all positions.
After the Bollinger Bands enter the closing stage, the market will generally fall into a volatile consolidation, and the gold market will not fluctuate much. The closing stage is a good opportunity to operate in the high-sell and low-suction range.
- Three tracks in the same direction and stop loss skills
After closing, if the middle rail can become an effective support resistance, there will be a state of three rails in the same direction. The three tracks in the same direction are the extremely strong and stable performance of the market, and it is also the time when investors’ patience is the most tested. This kind of situation is also the swept away in Sakata tactics, firmly clinging to the profitable position, the middle rail becomes a good point for adding positions, and also becomes the reference point for profit raising and stop loss, until it falls below the middle rail of Bollinger Bands until.
- Leveling and stop loss skills
When the market falls into shock consolidation, especially within a narrow range, the Bollinger Bands flatten. Going flat is the most beautiful but most difficult market to grasp, because there is a risk that the Bollinger Bands will open at any time. However, if this situation occurs in early trading, some scalping operations can be performed, and the stop loss setting is relatively loose. The normal operation should be patiently waiting for the opening direction of the Bollinger Bands.