How to deal with the sudden situation of foreign exchange stop loss setting? Foreign exchange investors will set foreign exchange stop loss when conducting foreign exchange operations. Under normal circumstances, the stop loss plan can be implemented, but it cannot be ruled out that some emergencies occur in the market, such as a sudden gap in the market, which skips itself. The set stop-loss price, or the market’s lack of liquidity, the foreign exchange stop-loss plan encounters obstacles, how to avoid losses in this case?
For example, if a customer is long at 3745 yuan, the planned target is 3820 yuan, the planned stop loss is 3720 yuan, and the planned profit-loss ratio is 3:1. However, due to the sharp drop in the outer market overnight, the market jumped over its stop loss and opened sharply lower at 3,653 yuan, which made the customer overwhelmed at once. After that, the price started a sharp rebound. This situation is a typical sudden stop loss. Under this circumstance, investors are faced with a lot of mental pressure, and the ideological struggle is also very fierce. On the one hand, the price has reached the stop-loss level, and according to the plan, it should be stopped. On the other hand, because the price is too oversold, the futures price may rebound sharply at any time. Stop loss, there is still the possibility of continuing to fall. All kinds of ideological struggles seriously interfere with the normal decision-making thinking of investors. If the price continues to fall slightly at this time, it may cause investors to make psychological stop losses at any time.
In the above example, the customer’s loss can be divided into two parts. That is, total loss = planned stop loss + sudden stop loss = (3745 yuan – 3720 yuan) + (3720-3670) = 25 + 50 = 75 yuan. If you do this for a long time, it will be difficult for investors to make money in the foreign exchange market .
In order to do a good job of foreign exchange stop loss in emergencies, investors need to know enough about the currency pair they choose, manage their funds reasonably, increase their ability to judge transactions, improve their trading plans, and fully consider when making plans. All kinds of accidents are possible. Finally, the most important point is not to panic at any time. Even if you encounter an accident, if you can remain rational and calm, you can still try to minimize your losses.