When should futures trading stop loss and take profit?

In futures trading, the apprentice will buy (enter) and the master will sell (exit)! In actual trading, we often encounter the situation that the stop loss reverses and the market breaks out after taking profit, which makes us deeply regret! The main force is to take advantage of the weakness of human nature, double-kill in the plate and wash the plate back and forth. So how to avoid such problems as much as possible? Let me talk about my own understanding. Today, I will talk about the most painful "stop loss" for everyone!

When should futures trading stop loss and take profit?

First of all, you must agree that futures trading must have a sense of stop loss.

Secondly, there is no 100% stable profit model and method for futures trading. Futures bosses and masters will have stop losses.

Based on the above two points, let's talk about stop loss.

Stop loss at the moment, I mean technical stop loss, not fundamentals. I think it is too late to make a fundamental stop loss now. Maybe you have exploded!

Stop loss, stop loss actively, and never stop loss passively. High-frequency trading, 2-jump stop loss and 5-jump take profit are all active operations. It is worthy of our reference and study, especially for new futures people.

What is active stop loss? It means to cut the gordian knot and leave as soon as you reach the target position according to the pre-made plan. In futures trading, only by keeping the principal can we continue to play! Your prior plan is based on your own trading model, otherwise your so-called active stop loss is also nonsense!

For traders who have their own trading model, stop loss is to test your loyalty to the model! The bottom line is that you can put up with it a little longer before it goes bad. Although this process is very painful, it is very painful. After the arrival of the big market, the long-short game is very fierce, and the intraday trend is often jumping up and down, washing away some traders who are not determined. There are only a few people who can make money in this market, and there must be a few people who can eat the big market.

It is often at that moment that you doubt the trading model and miss the wealth!

Of course, for futures newcomers or traders whose models are not mature enough. You can use a fixed number of points or a fixed proportion to make a stop loss. Your trading cycle is different, and your fixed point or proportion is different. Daily operation, the advice for everyone is:

If your low position is long or your high position is short, the general stop loss point is around 100.

Finally: passive stop loss

Why do we have a passive stop loss? That's because our greedy losses can be repeated, and the result is counterproductive, and the deeper the set! What's more, when our losses were magnified, we kept adding positions and tried to adjust the cost. In my opinion, any passive stop loss will make you lose a lot.

When the loss occurs, it is understandable that we choose to fight it. Because it is impossible for every transaction to be smooth sailing and make money once you enter.

It is normal to go through the process of profit-loss-profit.

However, when the loss increases further, the first thing you should do is to make a plan to stop the loss actively, and don't easily increase the position and adjust the cost in time, because you can't guarantee that the new order at this moment will make money. Raise your voice to remind you that when you still have the opportunity to stop loss actively, try to grasp it and don't become a passive stop loss!