Stop loss is considered as one of the preconditions for investors to implement short-term operations. For investors who like short-term operation, stop loss is conducive to controlling their investment losses within a certain range, so it is regarded as an important magic weapon for short-term operation. Nevertheless, I think it is better to be cautious about stop loss. Stop loss is a double-edged sword. After all, stop loss is cutting meat. If the stop loss frequently cuts the meat, then the big family in the stock market has long been cut into small retail investors, and the small retail investors have cancelled their accounts and become "black households" in the stock market. Moreover, as a way of speculation, the accuracy of stop loss is not high. Once the operation is wrong, you will cut off the "meat" at a low point and never get it back, while the chips that could have made money have become loss-making operations because of stop loss. There are too many such cases in the stock market and around us. According to the experience and lessons of the author's stock trading, the following three situations are not suitable for stop loss.

First, in the absence of obvious deterioration of the fundamentals of listed companies, chips in historical low-priced areas are not suitable for stop loss. Stop loss on such chips often means handing over profits. For such stocks, investors can boldly make up their positions when the volume can go down. Like Bai Min (600738) in August of 1998, after the rights issue, the stock index plummeted. As a result, it fell below the historical low point in 7 yuan, and the share price once hit 6.30 yuan. But soon the stock price was pulled up, and the stock also embarked on the road of bull market. Another example is Lin Qiu (60089 1), which once fell below the historical low of 6 yuan, hitting a new low of 5.06 yuan, but soon rose above 9 yuan. If investors cut off these stocks at these low points, they will regret it for life.

Second, it is not suitable for stop loss for stocks on the way up. According to wave theory, a complete rising wave consists of five waves, of which 1, 3 and 5 waves are rising waves, and 2 and 4 waves are adjustment waves. The decline of the stock price in the process of rising should be regarded as an adjustment to the rise and an opportunity to purchase goods. If this is a stop loss, it will often throw chips at a relatively low level, thus reducing the income. For example, at the beginning of this year, the Shanghai stock market was adjusted to 1893. At that time, many stocks fell by more than 7%. If you stop loss, you will throw your chips at a low point.

Third, don't rush to stop losses in stocks that fall at a high level without heavy volume. The delivery of dealers is often completed by many iterations. Although you are trapped, if it falls indefinitely, you can wait patiently for the dealer to pull it out next time or pay a little. Especially some small-cap stocks, the increase is not particularly large. After a period of consolidation, it is more likely that the dealer will raise the stock price again. Like Wujiang Electric Power (0975) not long ago, at the beginning of July, its share price once fell from 27.30 yuan to 24.40 yuan, a drop of more than 10%, but then rose again and hit a new high of 27.90 yuan. If investors stop at 10%, they will throw chips at short-term lows. Of course, for those stocks with huge gains and declining trading volume, investors must stop losses as soon as possible, so as to avoid the banker diving into the shipment and bringing you heavy losses.