How to set up take profit for foreign exchange speculation?

The content to be considered for taking a win and a stop loss is completely different.

What you need to stop winning is to protect your profits from being recouped by changing market conditions, and at the same time hope that the profit trend can be maximized. Just because you are in a profitable state, it means that the trend of the position is relatively correct, and you can rely more on your original technical analysis for guidance. In this way, you can be emboldened when you stop winning, and fully enjoy the profits that come when your analysis is correct. At the same time, stop winning should be regarded as the final end of a position (position squaring).

Stop loss is the last line of defense to protect the principal. Stop loss means that the facts have rejected your previous analysis. Although you cannot be sure whether this negation is correct, your principal has required you to retreat strategically, which makes stop loss absolute and conservative in magnitude.

If stop loss and stop loss have the same consideration, then we will not be able to enjoy the huge profits that risk can generate. If stop loss and stop loss have the same consideration, then our principal will be swallowed up by the volatile market sooner or later.

Therefore, there should be a different approach to winning.

First of all, the stop-win setting starts when your position has just entered a profitable trend, and the timing depends on your analysis and market facts.

Then, the stop-win range is determined according to the stage of the specific market (still technical analysis). It is particularly emphasized that the target level predicted before placing an order is only used to estimate the value of the order, and cannot be used as the basis for position squaring. Only stop-win is the final end of a position. Including new target levels at different stages later, it is only used to analyze the market trend, and cannot be used as a stop-win position or position squaring reference. Although this is contrary to classic techniques, only in this way can the impact of subjective analysis errors be eliminated to the greatest extent, and the position can have the possibility of position squaring at the maximum profit.

Therefore, the steps we recommend to stop winning are as follows.

1. The range of the stop-win setting at the beginning of a position is generally replaced by finding the width of the trend. We believe that this is the critical period when the level of analysis affects the entire profit. In the process of trend development, the stop-win range needs to be adjusted according to different stages of market operation, but it is only taken to the trend width of the market at that stage. The so-called market target level usually expected is only used as a reference for closely watching one's own position, not as a reference for stop-win. Because, relatively speaking, the width of market trend operation is more intuitive and credible; the judgment of market target level is more subjective and unstable.

2. When a pullback or rebound occurs, the market automatically exceeds the stop-win range and should temporarily position squaring (except for those that do not exceed). At this time, the original analysis has been confirmed to a certain extent, and you should increase your trust in it. If the original analysis believes that the trend is not over, you should rely on your further analysis to find out the re-establishment position to continue your position.

This position counts as a new opening, and the stop loss is also set first, and then the stop win is set. However, the number of stops allowed for this position can be appropriately increased, not because there is a profit bottom in front, but because if this position has multiple stops, it is more likely to be caused by the market sawing. Since the previous analysis has been partially confirmed, it is less likely that the position is reversed.

The advantage of this operating concept is that it avoids losses caused by excessive adjustments and sudden reversals, and gives the opportunity to choose again. The disadvantage is that it increases the possibility of "taking" the position and does not absolutely avoid the situation of sudden reversals. However, the accuracy of the "original analysis" is relatively high at this time, and even the accuracy of the "further analysis" is reduced, but after all, it is partially confirmed, which is also more reliable than in other cases, at least the mentality is better than in other cases. Therefore, the accuracy rate of this operating concept is still very high.

Overall, the above stop-win steps have less deterministic content than stop-loss, relying more on analysis with uncertainty, but this is the idea that conforms to the characteristics of stop-win, and leaves enough room for technical analysis.