How to deal with the problem of locking orders and solving orders?
In the case of complex market trends, more and more real-position customers are facing the problem of locking orders and solving orders, which also makes many investment friends depressed and distressed. The following teacher Pan Haochu will introduce to you the problem of locking orders and unlocking orders! Locking orders are divided into two types: locking loss orders and locking profit orders. In fact, it is not recommended for everyone to operate the lock order. Strictly set up a stop loss or take a profit in time. It is said: Locking orders is easy to solve orders, difficult to solve orders, and difficult to go to the sky! It can be seen that the difficulty and trouble of solving orders. If the unlocking operation is improper, small losses are likely to become large losses. Let's talk about lock losses and lock profits respectively.
First, lock damage
1. Why lock the loss? If you can strictly stop the loss, I don't think it is necessary to take this step. Generally, the order will be locked when the following situations occur: one situation is that the market becomes unclear after placing the order, and you can choose to lock the order when you can't judge the direction; the other situation is that you do not set a stop loss, and your account losses are already very large. If you can't bear position squaring, you can also choose the lock loss operation in order to prevent greater losses or liquidation. After locking the order, there is often a very important operation that will be forgotten, that is, it is best to add a stop loss to the order that is opposite to the analysis direction. You can set a slight increase of 2-3 points. In order to prevent excessive fluctuations before the real market comes out, it will be swept back and forth.
2. How to solve the order? Solving the order means that you should choose the appropriate time to solve the lock after locking the order, that is, to close the two orders separately. If you never close the position, although the account shows that the loss remains unchanged, in addition to bearing the interest on the overnight order, your subsequent operations and mentality will also be affected.
There are two difficulties in solving the order: the point and time of solving the order. At what point and when to solve the order will directly affect the profit and loss of your account. To put it simply: the point is best to find the breaking point, and the time must be found when the market direction is clear. For the average investor, the grasp of the point and time may be very difficult. Here are two methods that are relatively simple, feasible and easy to master after practice.
Method 1: First solve the counter-trend order;
Method 2: Solve the profit sheet first.
The individuals in the above two methods prefer the first one. Because the purpose of our locking orders is to prevent losses, then when the market is clear, removing the counter-trend order is equivalent to cutting off the source of loss. However, it should be noted that the counter-trend order does not equal the loss order. Another homeopathic order can choose the market to go almost flat again.
The second method is to take profits first, and the other order can wait for a pullback or reversal before leveling. But the pullback and reversal involve the issue of judging the timing. If another order fails to level in time, it is likely to turn to the medium and long term.
Lock profit
Strictly speaking, lock profit is actually not much different from lock loss. The only difference is that when lock order, one account holds order for loss and one for profit. Personal suggestion is that lock profit is not as good as taking profit in time or following up to move stop loss, because it is better to place an order after the market is clear.
Because the lock-in lock-in is profit, it is relatively easy to solve, and the psychological burden is much smaller. Although this is said, the principle of solving the order is actually similar to solving the loss order. Because the two want to get similar results, one is to reduce losses, and the other is to maximize returns. There is a philosophy in investing that reducing losses equals gaining profits!
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.
