When the stock price reaches the stop loss level, it will automatically buy or sell. It should be noted that some trading software charges for this service. Investors can set the stop loss according to the following methods: according to the risk tolerance, stable investors can set the stop loss point of 1% to 2% and the increase point of 10%; Aggressive investors may set a loss of 5% to 10% as the stop loss point, and increase 10% to 20% until the profit point.
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How to use take profit and stop loss;
First, turn to profit. Traders have a set of trading and fund management plans, and when making plans, they should have market entry prices and profit targets. When you trade with the trend, as long as it is a profitable position, you should hold it, the trend remains unchanged, and the position remains unchanged. When the market price reaches the important support level and resistance level, we should pay close attention to the market trend and use various methods to analyze and study whether there are signs of improvement in the market. If you think the market has turned, you should stop making profits.
Second, when you choose the right time to enter the market and trade according to the trading plan, it turns out that you are trading with the trend, so you should firmly hold your position and make profits with the changes of the market. When there are adjustments, there is no need to make a fuss, or to hold positions. However, there is a situation where you need to close your position, that is, when the market price is adjusted back to the price at which you opened your position, and the profit of your position is almost completely eaten, you must stop closing your position.
Third, when you trade with the trend, the profit part of the position you hold is relatively rich, and you are very worried that the market will adjust, or the market price is near the support level or resistance level, you can also take the method of gradually taking profits to avoid risks and expand the results. For example, if you set up a short position, the market will go down all the way, and the profit of the position you hold is quite rich. When the market price falls to the historical obvious resistance level, you can lighten your position 1/3 or half, continue to hold the remaining positions and wait and see the trading situation near the resistance level. If it continues to fall beyond the resistance level, it is necessary to resume the closed position; If the market price shows signs of turning around near the resistance level, all positions should be closed.
Stop loss is relatively simple compared with take profit, but when executing the stop loss plan, people are very painful inside. From the trading principle, we should hold profit orders and stop loss orders in time, but in practice, it is often the opposite. Once the traders are quilted, they will be lucky and hope that the market will turn over according to their own wishes, instead of leveling the loss position. I have met many investors in practice, and there is a common phenomenon: profit orders are particularly happy, but loss orders are difficult to stop.