Become issue city to win frequently general: Program melts stop harm strategy

The most great trade on world Yuan one is useful just simple trade rule - -" crocodile principle". This rule originates from the way of swallowing of crocodile: The more prey attempts to struggle , the more the gains of crocodile. A crocodile of assumption bites your foot, if you attempt to throw off foot with arm, its mouth can at the same time bite your foot and arm. The more you struggle , get stuck the more deeply. So, if crocodile bites your foot, must remember: Your only survival opportunity is to sacrifice a foot. If in order to the language expression of goods market, this principle is: When you know that self has commited mistake, finish immediately to come on the stage! Cannot seek excuse and reason again or expect that hurry to be away from site! Stop the necessariness that harms

Fluctuation and unpredictability are the most basic features of market, this is the existent foundation of market , is also the reason of trade apoplexy dangerous arising, this is a feature that cannot change. In trade, the analysis forecast that has no definiteness forever and has is a kind of possibility only, according to the trade nature that this kind of possibility carries out , it is uncertain, uncertain behavior must get the enlargement that has measure to control its risk, stop harm have so produced.

Stop harm is produced naturally in trade process by mankind, is not to make painstakingly , is that investor protects a kind of own instinct reaction, the uncertainty of market has brought up to stop to harm existent necessariness and importance. Successful investor may have different trade way, but stop harm but being guarantee the common feature that they get success. World investment great master rope Luo Si has said that investment has no risk, out of control investment just has risk. Harm till institute, must not talk about love with loss. Stop harm is more important than profit, because at any time, it is the first place to protect book, profit is second position, establishment is reasonable to stop to harm principle pretty efficiently, prudent stop the core that harms principle lies in do not let loss continued enlargement.

Why stop harm

Understanding to stop the meaning that harms is no doubt important, however, this is not last result. In fact, investor has installed to stop to harm and is not as everywhere as conducted example, on market having been swept the floor go out tragedy nearly put on the stage every day. Stop harm is what and so difficult? Reasons has 3: Firstly, it is lucky and psychological to haunt. Some investors though the tendency known also goes up have broken to position, but since hesitating too, always want to see and wait again, causing self to miss to stop the very good opportunity that harms; Secondly, price frequently fluctuation can let investor hesitant, regular mistake stop harm can leave to investor the memory waved and is not gone to , so shaking investor to stop next time the determination that harms; Thirdly, till execution, it is the matter of a pain to harm , it is a bloody process , is for the challenge of the weakness of human nature , and tests.

In fact, trade every time we can not determine that is correct state or wrong state, even profit , we are hard to also decide whether to come on the stage immediately or hold to look around , more moreover is in the state of quilt cover take off. The pursuit of human nature greedy instinct can make each investor not to be willing to win some points less, do not be willing to thank to some points more.

Program

Because of above-mentioned reason, when price arrives , when harming position, some investor misses inch , worries about gains and losses , stop harm location to change and then alter; Some investor is temporary to change mind , counters tendency to add storehouse , attempts to put all of one's eggs into one basket in order to retrieve loss; Some investor adopts the policy of " ostrich " straightforwardly after loss enlarges , lets matters drift. Avoid these phenomenons, the author thinks may adopt program melt stop harm strategy.

The big futures trading on world knows can offer frequently to stop to harm instruction. Trade person may set a price in advance, when market price reaches this price, stop harm instruction come into effect immediately voluntarily. The domestic place of futures trading now returns have no to stop to harm instruction, but may have the aid of the advanced tool of futures trading, this is a kind of present simple and effective method that helps to harm till investor strict execution.

It is harmed that now, domestic some trade system may offer market price to stop and price limit stops harm is two to stop to harm instruction. Market price stops harm to denote market price one touch in advance set up stop harm price, send immediately with market price to stop to harm entrustment; Till price limit harming is when market price one touches in advance set up stop send entrustment when harming price with price limit. Till market price, harming instruct , can ensure to stop to harm success, harm instruction till price limit may avoid arise unnecessary loss when price is not continuous , each favorable fraud of two. Usually, on concluding active kind, use harms instruction till market price, and on concluding not active kind, use harms instruction till price limit.

This kind of trade system is helpful for investor to raise , is good to stop to harm habit, so, avoid the risk in market , make it reduce loss to the maximum extent , make it change passive into active , when the neutrality of option market the land that not defeated.

How to understand

It will be wrong that the uncertainty of market and the fluctuation of price have decided to stop to harm. In fact, is trading every time , we also do do not settle should be not this to stop to harm, harm if stoping as can like secretly perhaps, stop harm wrong, it will not only have the pain of fund decreasing , can have more a kind of is painful as having been deceived , the strike on soul just has be most difficult investor with the pain borne.

Therefore till understanding harming in principle how to understand mistake correctly stop harm. Mistake stop harm us should be also calm to accept , lift simple example, if in trade you stop harm is correct, that signifies you trade every time is correct, and if your trade is correct , is that again why want stop harm? So, stop harm is a kind of cost, seeking profit the cost of opportunity, trading profit the cost that place must pay out , this kind of cost has only big and small minutes, do not have the minute for mistake, you will profit , must pay out cost , including harming the cost caused till mistake.

Calmness faces mistake stop harm , do not evade , need not be horrified, only so , then can trade normally , and profit eventually, this is the understanding that the author harms for stoping , includes the understanding that harms for stoping wrongly.

Should

One of which," everything is upright in advance , does not be abandoned in advance ", have stop harm must set before marching into the arena. To do futures investment, must raise a kind of good habit , is to install when opening storehouse to stop to harm , and consider to use what standard to be too late frequently again when loss appears.

Secondly, stop harm to want is with tendency. Tendency has 3 kinds: Rise, is declining and dull. When dull stage, price in certain a scope the probability of the wrongness that stops to harm will be big , therefore, stop the execution that harms wants and tendency. In practice, the author thinks that dulls , may regard to do to see the tendency that not understood , investor may rehabilitate.

Thirdly, selecting trade tool to hold to stop harm position. This is wanted because of person and is different, may be line , tendency line, form and other tools, but suit self, do not use because of others well you take blindly to use. Trade tool determine that is very important, and with the ability of trade tool, can cause completely different trade result.

In a word, the emphasis trade strategy of futures trading of well developed, in which, fund is managed may be regard as its core, stop harm the soul that may be as fund managed. Make fund management only , strict stop harm , carefully, water length flows out talent, become option market win frequently general.