Gann, a famous investment guru, has done more than 280 operations, 92% of which make money and 8% lose money. Every stock loss is an early stop loss. The essence of Gann's theory is to remind stop loss repeatedly.
An excellent and qualified stock trader must first be a stop-loss expert.
Therefore, the first lesson of entering the market should start with learning to stop loss.
The commonly used stop loss methods mainly include fixed stop loss, technical stop loss and market stop loss. The following sections introduce their usage methods and skills for your reference.
Section 1: Fixed Stop Loss from Avenue to Jane
The fixed stop loss method is the simplest stop loss method, which refers to setting the loss at a fixed ratio and closing the position in time once the loss is greater than this ratio. Generally suitable for investors who have just entered the market and markets with higher risks, such as futures markets.
The mandatory effect of fixed stop loss is obvious, and investors do not need to rely too much on market judgment. The fixed stop loss is affected by two factors: one is the investor's tolerance, which is determined by the investor's mentality and economic tolerance, and also by the profit expectation set by the investor.
The setting of stop loss rate is the key of fixed stop loss method. The proportion of fixed stop loss is mainly determined by the risk tolerance of investors and the fluctuation of investment varieties, and it is also closely related to the market environment. In principle, in a strong market, the stop loss position should be relatively narrow and the upper limit should be implemented; Balance the city and implement the middle limit; Weak market, implement the lower limit. For example, in the short-term, in the range of 5- 10%, choose 5% as the stop loss position of strong market, because the strong stocks in strong market, especially the leading stocks in hot sectors, rarely pull back by more than 5%, and there is a price difference of more than 5%. Might as well find another soldier. In the balanced market, choose 8% as the stop loss position, and in the weak market, choose 10% as the stop loss position. Generally speaking, weak markets should not buy stocks, but they can also participate when there are obvious hot spots in weak markets. Due to the weak market, the correction of individual stocks will be large, and the stop loss position is too narrow, which may lead to frequent stop losses.
The purpose of stop loss is to reduce losses and maintain profits, so the setting of stop loss position must be adjusted reasonably around the market price and profit and loss situation. If the day of entry is tied, how much the cost price falls can be used as a stop loss. If you are in a profitable state as soon as you enter the market, immediately raise the stop loss position and take how much the highest price of the day falls as the stop loss position. In the future, as the stock price rises, the stop-loss price will gradually increase. Only in this way can we ensure the minimum loss and maximum profit, and strive to "win" step by step in the unpredictable securities market.
The fixed stop loss method seems simple, but as the saying goes, the simpler the road is, the more practical it is, and the more important it is to be strict with yourself. Resolutely implementing it can keep the bottom line of the quota, and completely avoid the stock market tragedy of "working hard for half a year and returning to before liberation overnight" and "asking how much you can worry about, just like PetroChina in Man Cang".
Section 2: Fearless Stop Loss
The technical stop-loss method combines stop-loss setting with technical analysis. After eliminating random market fluctuations, stop-loss orders are set at key technical positions to avoid further losses. Compared with fixed stop loss, technical stop loss method has higher requirements for investors, and it is difficult to find a fixed model. Generally speaking, using technical stop loss method is nothing more than gambling with small losses to make big profits.
Technical stop loss method requires investors to have strong technical analysis ability, which is a common stop loss method in actual combat and suitable for some investors with technical analysis experience. Generally speaking, technical stop loss is divided into the following categories:
1, tangent stop loss method.
Tangent line is a very important analytical tool in technical analysis, including support line, pressure line, golden section line, percentage line, speed line, Ganzi line and so on. The most commonly used and simplest is the support line stop loss, that is, after the stock price forms the support line, once the stock price effectively breaks through the support line, it marks that the technology has been broken. At this time, the holder should decisively stop the loss and leave.
2. Morphological stop loss method.
Once the stock price breaks through the key positions such as the head and shoulder top, the M head, the triple top neckline or the bottom sideline of the box platform, it indicates that the head type is established, and the stop loss should be determined at this time.
3.k-line stop loss method.
Including the emergence of a large number of Long Yin, Shooting Star, High Cross Star, Stars and other K-lines and combinations, investors should stop losses in advance.
4. Moving average stop loss method.
Generally speaking, the 10 moving average can maintain the short-term trend, the 20-day moving average or the 30-day moving average can maintain the medium-term trend, and the semi-annual (125 moving average) and annual (250-day moving average) can maintain the long-term trend. If you are a short-term speculator, you can use the 10 moving average as the stop loss point; If it is a long-term buyer, you can refer to the half-year line and the annual line as stop-loss points; For mid-line investors, the 20-day moving average is more important in practical application. If investors buy in the lower track of the rising channel, they will wait for the rising trend to end before closing their positions, and the stop loss position is set near the relatively reliable moving average. If the stock price has been above the 20-day moving average and the 20-day moving average is on the rise, there is no need to worry about a small correction. In the process of rising, the stock price callback will always stop above the 20-day moving average. After losing the rising energy, the stock price begins to pull back or sideways, and the 20-day moving average will gradually turn from upward to flat. At this time, we must be highly vigilant. Once the stock price effectively falls below the 20-day moving average and cannot return to the online again within 3 days, the stop loss should be immediately stopped.
5. Index stop loss method.
Selling orders issued according to technical indicators are used as stop-loss signals, such as KDJ, MACD, RSI and other commonly used indicators. Selling signals such as death crossing appear at a relatively high level, which means that the short-term market has entered a shock period, and holders should consider stopping and leaving.
I often hear some so-called "masters" declare that they want to abandon the market and make stocks. It is true that it is possible to dilute the selected stocks of the index during the sideways consolidation of the market. But if it is a bear market stage, there is only one ending: buy ten sets and buy nine sets. The market is the weather vane of the market. When the environment is bad, "there are no eggs under the nest." In the down stage of the market, the number of stocks that can rise against the market will not exceed 5%, and the main force will generally not rise against the market, because rising against the market will encounter tenacious selling pressure, and the cost is very high. When the market rises, it will make full use of its strength. Investors are enthusiastic and there are many sedan chairs, so it is easy to pull to a high position.
In practice, many people think that they will not get caught in the rain and wrestle with umbrellas and crutches. Light rain is naturally safe, but traveling in a storm is inevitably dangerous. Therefore, once the market index breaks, in principle, investors should stop the stocks in their hands, which is the so-called market stop loss method. Historical experience tells us that in the early stage of the market index breaking, almost all the stocks sold can effectively avoid systemic downside risks and avoid long-term lock-in.
Precautions:
(1) For investors, after selecting the investment target, it is necessary to formulate the corresponding operation plan and risk early warning measures, set the stop-loss position or stop-loss ratio, and once the market does not meet the expected trend and reaches the stop-loss requirement, it is necessary to decisively stop and leave.
(2) Each method has some imperfections, so it should not be too mechanical when used. In addition, selling at the highest point is just an extravagant hope. Don't care too much about the imperfection of profits, so as not to destroy the peaceful mentality. In the market, if you demand too much, there will only be one word "regret" in the end: regret not buying, regret not selling, regret selling early, and regret the light position? Therefore, if you leave a little room for investment, you will regret less, and it is possible to make small money often.
(3) Stop loss is not everything, it is just a safety belt and parachute on the investment road. Not wearing a seat belt does not mean that you will definitely crash, but wearing a seat belt will make the investment more stable. Stop loss is necessary, but it can only be used as a preventive measure, and the abuse and misuse of stop loss will only cause harm. Therefore, investors should improve their trading skills and experience and reduce the damage caused by blind stop loss and frequent stop loss.
(4) For most investors, only by making fewer mistakes, reducing the frequency, operating in small positions, and persistently implementing operational discipline can they upgrade from amateurs to professionals and embark on a long-term and stable road to profitability.
At this moment, I began to refuse the deep set.
After the death of a rich man without an heir, he left a large legacy to a distant relative, who was a beggar who lived by begging all the year round. The beggar who accepted the inheritance immediately changed his values and became a millionaire. A journalist came to interview the lucky beggar: "What is the first thing you want to do after you inherit the inheritance?" The beggar replied, "I want to buy a better bowl and a strong stick, so it will be more convenient for me to go out and beg."
It can be seen that habit has an absolute influence on us, because it is consistent. Unconsciously affected our behavior, affected our efficiency, and affected our success or failure for many years.
About 5% of a person's behavior in a day is non-habitual, and the remaining 95% is habitual. Even if it is an innovation that breaks the routine, it can eventually evolve into a habitual innovation.
According to the research results of behavioral psychology: repeating for more than 3 weeks will form a habit; Repeated for more than 3 months will form a stable habit, that is, the same action, repeated for 3 weeks will become a habitual action, forming a stable habit.
Aristotle said, "People's actions are always repetitive." Therefore, Excellence is not a single act, but a habit. "
So, dear readers, after reading this chapter, from now on, please make up your mind, adhere to and cultivate good stop-loss habits, stay away from depth, and be an excellent investor who abides by operational discipline!