Stop loss, also known as "cutting meat", refers to cutting meat in time when the loss of an investment reaches a predetermined amount to avoid further loss. Its purpose is to limit the loss to a smaller range when the investment goes wrong. An important difference between stock investment and gambling is that the former can limit the loss within a certain range through stop loss and maximize the return on success. In other words, a stop loss makes it possible to get a bigger profit at a smaller cost. The fact that there are countless blood in the stock market shows that an unexpected investment mistake is fatal enough, but stop loss can help investors save the day.

Stop loss technology:

1 combined stop loss

Investors will no longer pay attention to a single fund product, but to the change of portfolio style of radical, stable and conservative funds. If the risk tolerance of investors changes, it should not be limited to sticking to the original fund product portfolio, but should take the initiative to adjust.

2 variety stop loss:

Money market funds have no stop loss, but are based on liquidity management of funds. Once it is held for three years, there will be a third-party agency guarantee, so don't worry too much.

Stop loss of stock fund products should grasp the change of economic cycle. Only when the economy is booming, the stop loss will play a hedging role. The stop loss of bond fund products should consider the change of monetary policy.

Stop loss in operation mode. Mainly, investors can avoid the risk of concentrated investment in fund products by covering outstanding fund products or optimizing the portfolio structure of fund products.

4 mechanism stop loss. In other words, we should use the financial management idea of "not putting eggs in the same basket" to redistribute family assets among bank deposits, insurance and capital markets.

5 concept stop loss. Investors should adhere to long-term investment, value investment, diversified investment and rational investment in the specific fund product investment process. Stop loss by changing the habit of frequent fund operation and adhering to the correct concept of keeping the base.