How should the take profit be set?
In trading, the setting of take profit is crucial. It is not only related to the profit and loss of investors, but also reflects investors' perception of the market and risk control ability. So, how to set the take profit reasonably***?
1. Understand the meaning of take profit***
Take Profit***, as the name suggests, refers to the critical point of profit and loss set by investors in ** trading. When the stock price falls below ***, investors should exit the market decisively to avoid further losses;When the stock price reaches the take-profit level, investors should take profits appropriately and lock in profits. Therefore, setting a reasonable take profit*** is the key to achieving investment objectives and controlling risks.
Second, master the principle of setting take profit
As the saying goes, those who can buy are apprentices, and those who can sell are masters. And selling is also a perfect interpretation of take-profit and stop-loss, knowing that take-profit can maximize one's interests, and knowing that stop-loss can minimize one's losses!
When setting a take profit***, investors should follow the following principles:
How should the Take Profit point be set?
1. Set from **, take 5-day ** as a reference, when the stock price deviates from the 5-day ** angle is greater than 70% (about 8%), it can be used as a short-term take-profit point.
2. Judging from the trend. The previous high, or the high of a certain range, is used as the take profit level.
3. Psychological expectations, Buffett's words, greed is the root of the error rate of trading. Reaching your own psychological point, or the same, in fact, it doesn't matter how much, after all, what is in your pocket is the harvest.
So how to determine the stop loss point?
According to the personal risk tolerance setting***Different investors have different risk tolerances, so they should be reasonably set according to their own risk tolerance***Generally speaking, the setting should not exceed the range of losses that investors can bear.
Usually, we have to give ourselves a psychological expectation when we enter the market, we have to be beaten if we make a mistake, and we have to pay, how much the unit price is, this is up to us!
Secondly, with the support level as the stop loss point, usually we will take the 20-day ** as the lifeline, once it falls below, it is basically difficult to perform in the short term, and some traders will use the 10-day line as a reference. Combine your personal investment preferences.
Finally, combined with historical trends, the bottom of the box is underlined. Break below and leave the market.
Similarly, we can also take the price limit board as a *** in the early stage of starting, there is often a phenomenon of the price limit test disk, the opening price of the price limit board often means the cost line of the main force, so once the back falls below the cost line, indicating that the main force is not there, then it can also be used as a way to stop loss.
4. Precautions
When setting a take profit***, investors should pay attention to the following:
1.Don't go too far for perfection. The market movement is difficult**, and investors should accept certain risks and uncertainties.
2.Don't be overconfident. The market is volatile, and investors should always be vigilant to avoid missing out on opportunities due to overconfidence.
3.Don't blindly follow the herd. When setting a take profit***, investors should think independently to avoid losses caused by blindly following the trend.
4.Lessons learned. In the process of investment, investors should continue to sum up lessons and lessons, and constantly improve their investment strategies and methods of setting profits.
After careful research, I found an effective way to tell when to take profit or stop loss, especially in ** trading. When the stock price reaches the upper limit, it is a strong signal that the market sentiment is high and trading is active. In this case, we need to pay close attention to the market dynamics in order to make timely decisions. If there is a significant stagflation in the stock price near the price limit, or if the volume shrinks significantly, it may mean that the trend is nearing its end. At this point, we should consider selling** to lock in profits. On the contrary, if the stock price is driven by strong buying at the price limit, and the volume continues to expand, it indicates that the market is still in a strong state. In this case, we can continue to hold ** and consider adding to our position when appropriate. In short, by paying close attention to market dynamics and stock price trends, combined with the key indicator of the price limit, we can more accurately judge when to take profit or stop loss, so as to obtain better returns in ** trading.
In short, setting the take profit reasonably is a crucial part of trading. Investors should fully understand the implications, grasp the principles and methods, and pay attention to relevant matters in order to achieve investment objectives and control risks. Through continuous learning and practice, investors can gradually improve their investment level and risk control ability, and lay a solid foundation for future investment.