Stop-loss points and take-profit points must be understood by investors, and users also need to analyze various skills in their daily investment process. In the stock market, according to different stocks and different periods, there are different risk tolerance, and their stop loss settings are different. So, what is the appropriate stop loss point?

what is the appropriate stop-loss point?

The proportion of futures automatic stop loss can be set according to your own habits. The setting of stop loss position should not be a fixed percentage. When the stock price falls to what position, the seller needs the investor to analyze it according to the actual situation.

1 the best ratio of take profit and stop loss is 1:2, and stop loss when the current price is lower than 5% or 1% of the purchase price.

2 the stop-loss position of speculative short-term buying is set to fall by 2% to 3%, while the stop-loss position of investment long-term buying is set to fall by a relatively large proportion.

3 under the condition that the stock price has moved in a favorable direction, at this time, ordinary investors usually adopt the follow-up stop loss, which is mainly set by the 5-day moving average and 3% below the closing price of the previous day.

4 generally, when there is abnormal trading volume in the stock market and there is no breakthrough, the previous protective stop loss should be cancelled, and then it should be placed at about 2% below the closing price of that day.

is it necessary to set a stop loss point?

It is very necessary to set a stop-loss point. The setting of a stock stop-loss point is generally an important price in the process of stock falling. However, after the stock price reaches the stop loss point, it will not automatically sell the stop loss, and it is necessary to sell the stop loss manually.

the stop loss point refers to the maximum loss that a stock market trading position is allowed to bear. Once the loss limit is reached, the trader must close the position or lighten the position to prevent the loss from expanding.

under normal circumstances, stop-loss points are generally divided into two types, namely protective stop-loss and follow-up stop-loss. Stop loss is a necessary means to control risks. How to make good use of stop loss tools, investors should have their own styles.