Many stocks have peaked and fallen recently, causing investors who were unable to respond to the situation to suffer considerable losses. This shows that it is very important to sell high at the right time. However, when to sell high, a certain reference object must be used as the standard. The setting of the reference object is generally based on the following points:

Based on comparing with the recent highest price, when the stock price falls from the highest price to a certain extent. Sell, if the investor is in a loss state at this time, it is called stop loss; if the investor is in a profit state, it is called stop profit. This method is used in most cases to take profits. The extent of the decline in the profit stop depends on the activity of the stock price. For more active stocks, the range should be set larger.

Set a stop-loss position based on the support level of technical indicators, such as the 10-day, 30-day or 125-day moving average; when MACD appears as a green columnar line for the first time; or based on historical Key location settings of great significance, such as locations where major policies were introduced in history.

You can also set reference objects according to the K-line shape, mainly including: the tangent line of the trend line; the neckline position of the head shape such as head and shoulders top or arc top; the lower rail of the ascending channel; the edge of the gap etc.

In actual practice, the profit-taking level can also be set according to the integer price of the stock price, such as: 10 yuan; 20 yuan. This method does not have much scientific basis, mainly because the round-number price has certain support and resistance effects on the psychology of the investing public.

Some people will also set profit-taking levels based on transaction-intensive areas, such as: peak areas of mobile cost distribution. Because the transaction intensive area will have a direct support and resistance effect on the stock price. After a solid bottom is broken down, the original strong support area will often be transformed into a strong resistance area.

Sometimes, you can also set the psychological price based on your own experience as take-profit and stop-loss levels.

When investors pay attention to a certain stock for a long time and have a deep understanding of the nature of the stock, the take-profit and stop-loss levels set according to the psychological price are often very effective