What is the concept and significance of futures rigid stop loss?
す? What is the potential? What's the history? Hey? —— Tang Yeren Da Yue Metal Investment Report 1. The concept of rigid stop loss refers to closing the stop loss immediately according to the pre-set price, without looking for new reasons to delay the stop loss, and choosing the right price according to the disk surface. Rigid stop loss includes loss point stop loss percentage stop loss and cost price stop loss. To set the stop loss price in advance, it is necessary to comprehensively use fundamental stop loss, technical stop loss and other technologies to determine the scientific stop loss price, which not only ensures the correct stop loss, but also prevents the loss from further expanding; We should also avoid being deceived by false breakthroughs and causing unnecessary losses. When setting the stop-loss price, the point stop-loss, percentage stop-loss and cost stop-loss should be converted into specific absolute values, which is convenient for operation and execution. After the predetermined stop-loss price is determined, the decision-maker should hand over the stop-loss price to the trader for specific execution. The decision-maker should stay away from the disk and avoid making excuses not to stop the loss, or choose the best point to lose the stop-loss opportunity, which leads to the failure to execute the predetermined stop-loss price and finally stop the loss. 2. Significance of Rigid Stop Loss Rigid stop loss is the last line of defense for stop loss operation, which is of great significance for implementing stop loss when the market makes mistakes. The first is to ensure the stop loss of the wrong warehouse receipt. When investors judge the running direction of the stock index and open positions according to the judgment, the stock index does not run in the predicted direction, but runs in the opposite direction, which in itself shows that the market judgment is wrong. We should not find any reason to keep this wrong warehouse receipt, but should immediately close the position and stop the loss to prevent the loss from further expanding. Rigid stop loss is based on loss point, percentage and cost price, which is essentially the concrete implementation of firm stop loss after a certain range of reverse operation. Stop-loss operation according to the rigid stop-loss principle can ensure that the wrong warehouse receipt will be closed with the minimum loss stop-loss and reduce the loss to the minimum range. The second is to avoid indecision and lose the best stop loss opportunity. In quite a few cases, investors have made specific stop-loss plans, but looking at the disk trend of the stock index, they will look for various reasons to support the original wrong judgment or find a better stop-loss point. As a result, the stock indexes go further and further. In the end, they are forced to stop because they are running in the opposite direction to a large extent, or they simply don't stop because of too many losses, which leads to serious consequences. Rigid stop-loss requires decision makers to set a stop-loss price and give it to traders for execution, without looking at the market and looking for reasons, so as to ensure the strict implementation of the stop-loss plan and minimize the loss of wrong warehouse receipts. The third is to minimize losses. For the warehouse receipts that the stock index runs in the opposite direction after warehousing, most of them are wrong warehouse receipts, which will run in the opposite direction with a very large margin, and the losses caused by not stopping the loss in time will be very large.