There are two purposes of stock stop loss: one is to prevent the loss from expanding; The second is to get an opportunity for another stock to rise. The question of "can you stop loss" can be seen from the purpose and style of individual investment in stocks, but from the experience of most old investors, it is better to stop loss in stock trading. The specific situation is analyzed as follows:
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First, there is a saying about the purpose of stock stop loss: the stock market has no bottom. When the stock market falls, it will exceed the imagination of investors. You think it has fallen by 20% to the bottom. When it continued to fall, it had already fallen by 40%. You think you have really reached the bottom, but it continues to fall. Therefore, in order to prevent a stock from falling continuously, it is necessary to "stop". This is one of the purposes of stock stop loss: to prevent the loss from expanding. Suppose we set a stop-loss point of 15% and sell the stock when it falls to 15%, which can prevent the stock from falling to 30%, 50% or even falling sharply, thus preventing the loss from expanding.
When we stopped a stock and bought another stock, this stock was bought correctly and rose well. At this time, it embodies another purpose of stop loss: to obtain the rising opportunity of another stock. If we don't have a stop loss, then the funds are still "deeply embedded" in the previous stocks.
Therefore, stock stop loss has two purposes: one is to prevent the loss from expanding; The second is to get an opportunity for another stock to rise.
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Second, can you stop loss According to the empirical analysis of many old investors, it is better to stop loss in stock trading than not to stop loss. Then, some new investors have doubts: if I stop to buy another stock, will I lose more?
If you keep buying a stock, it may go up after death, depending on the investor's investment style. But "dead cover" will consume a lot of investment time, and some stocks will fall for two or three years, or even longer, which is too uneconomical and energy-consuming for the efficiency of capital use.
For example, it is easier to understand. For example, we bought three stocks and stopped for three times, with a stop loss of 15% and a loss of 45%. But when we bought the fourth stock (assuming the same amount of funds), we bought it right and the increase reached 80%. After subtracting this profit from the first three stops, there is still a profit of 35%.
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To understand this truth, we should introduce the concepts of "winning rate" and "profit-loss ratio". Odds are the ratio obtained by comparing the number of times you make profits with the total number of times you buy stocks. For example, if you bought three stocks (three times) in the first half of 202 1, 1 made money and two lost money, then the chance of winning is 33%.
The profit-loss ratio is to subdivide each investment into multiple times or multiple times, and how much you earn and how much you lose; It is measured from the perspective of quantity. For example, if you buy three stocks, the principal 10000 yuan, 1 loss 1000 yuan, the second one loses 2000 yuan, and the third one earns 5000 yuan. Then, the loss ratio of the 1 pen is 10%, the second loss ratio is 20%, the third profit ratio is 50%, and the total profit ratio of the three funds is 20%.
In order to make money in the capital market, winning rate and profit-loss ratio are very important. However, the trend of the capital market is unpredictable. It is impossible for us to make money from every investment, or even lose more money than make money, that is, the chance of winning is low. But if we win the "profit-loss ratio", then we will eventually make money.
Therefore, the stock market needs a stop loss, because although the stop loss will reduce the "winning rate", it can win in the "profit-loss ratio" and finally win money in the stock market.