Li Feifo, Chen Jiulin and Binzhongtai are living examples in the face of stop loss, while Soros, who is good at stop loss, is another kind of scenery, and stop loss keeps him alive again and again. Stop loss or not, pay attention to stop loss or not, is a major event that determines the fate and final outcome of investment.
It can be said that before you learn to stop loss, you are just being stupid. I think stop loss is the first important issue in financial market, even more important than buying, because stop loss is essentially awe of financial market, recognition of uncertainty and respect for market. Whether you can buy is only one of the factors that you can earn, and whether you can stop loss is all the factors that you can lose. How much you earn depends on the market, and how much you lose depends almost entirely on yourself.
I know a master whose view is that stop loss is always right, even if it is wrong in hindsight. At first I thought this view was a bit extreme. Later, I gradually realized that this formulation is actually very meaningful. It is the heartfelt words after understanding the mystery of the financial market and the enlightened words after thorough understanding.
Because only in this way can we accept the stop loss from the depths of our souls, rather than mentioning it verbally. Only by accepting that stop loss is always the right view can we get rid of shyness, hesitation and indecision on the issue of stop loss, erase the thoughts of luck, gambling, waiting and expecting miracles from the depths of the subconscious, and establish a real stop loss thought.
Many people don't want to stop loss, mainly because there are several people in his soul who can't pass:
The first one is a fluke.
Maybe it will rebound after a while, maybe there will be a miracle, which is almost the biggest psychological obstacle to stop loss. Many people are unwilling to stop loss or hesitate to stop loss, which is the idea. In fact, at this time, we should ask ourselves: am I willing to open a position? If I don't want to, then I should stop.
The second is humiliation.
How shameful would it be if it rose sharply after the stop loss? Most people who don't want to stop loss have this kind of psychological trouble. From the perspective of behavioral economics, this kind of pain is far greater than the psychological comfort brought by earning the same money on other commodities.
Therefore, the financial market is anti-human, which is obvious from the psychological point of view of stop loss. After the stop loss, the price rises sharply, and it needs to bear great psychological torture. This kind of torture has a great sense of humiliation, as if you are an idiot and have a poor IQ.
In order to reverse this psychological misunderstanding, we should think about it: stop loss is that we are responsible for our past mistakes, even if it rises sharply tomorrow, it is another problem and it is two logics.
And there are many examples of a big drop after a stop loss. Why are we entangled in the ups and downs after the stop loss? After the stop loss, we can earn a little less at most, and once we don't stop loss, we may go to the end of the road and lose everything. PetroChina is a living example.
The third level is misunderstanding.
There are three typical "profits are stopped by frequent stops", "stop loss means you won't buy, so you don't need to stop loss" and "stop loss is incompetence". These popular misunderstandings have made many lucky people find excuses and are deeply poisoned.
In fact, these questions are not worth refuting. Who has ever seen a stop loss can take a profit? I have seen most people go bankrupt because they don't stop loss, and I have never seen anyone go bankrupt because of stop loss. I have also met many people who will buy but will not stop loss. Finally, the bamboo basket draws water with a sieve. I have never seen a person who is good at stop loss and finally doesn't make money.
As I said before, if the risk problem is solved, the profit will come uninvited. Stop loss is to solve the risk problem. A master who is really good at stop loss, his profit is uninvited. In my opinion, stop loss is not a lack of ability, but a great ability.
It's like in Sun Tzu's Art of War, being in an invincible position first and waiting for the enemy to win. Which victorious general does not protect himself from being defeated first, and then defeat the enemy? Chen Jiulin, who despised stop loss, went bankrupt, and Rong Zhijian, who despised stop loss, took a curtain call. These two people are very skillful, so they are still buried by the market and have no stop loss.
The fourth level is death.
I've lost so much, what's the point of stopping loss? To put it bluntly, this is numbness, and it is a broken jar. This kind of person will know how stupid he is if he can look back and see that China oil has dropped from 48.62 yuan to 7.62 yuan now, China aluminum has dropped from 60.60 yuan to 3.3 1 now, and China ships have dropped from 300 yuan to 19.87 yuan now.
When analyzing the boom and bust markets, we said that once a commodity has ended its long boom market, its decline will be long and endless. If you don't stop loss, you may really leave the wealth management products to future generations.
The fifth level is that you don't care, and you lose a little.
This is just the opposite of the above. There are too many losses above and not enough losses here. Small losses don't seem to matter, and many big losses are small losses. Many people don't stop loss because it is a small loss at first and they don't bother to stop loss. Later, it became a big loss, numb, and no stop loss. The result is to ask how much you can worry about, just like PetroChina in Man Cang.
The above five obstacles are obstacles to stop loss. The core is that you dare not face your own mistakes and hope to cover up the mistakes that have happened with greater "gambling". This is the most terrible thing in the financial market. Everything has a cost, and stop loss also has a cost. The cost of stop loss is what to do if the stop loss is wrong.
Many people don't want to stop loss, just don't want to pay even a little cost for it, hoping that everything is free and all the proceeds are taken up. How is that possible? Many people don't stop loss because they are afraid of stop loss mistakes. This kind of person can ignore the mistakes that have happened, but worry that the future may not be the wrong stop loss, which is ridiculous.
What's more, stop loss is the best way to stop mistakes. So I firmly believe that stop loss is always correct. Even if the stop loss is wrong, it will be less profitable at most, but the stop loss can avoid bankruptcy forever, which is the foundation of the financial market.
Tactically, I suggest the following stop loss:
First, the loss amount reaches 5% of the total funds, and the stop loss is unconditional for any reason and excuse;
Second, when the market is bad and the trend is unfavorable to me, stop immediately;
Third, when the trend is incomprehensible and unfavorable to me, stop immediately;
Fourth, after buying, the expectation is not realized, and the stop loss is gradually stopped;
Fifth, time stop loss, there is no market for a long time after buying, and stop loss gradually;
Sixth, the reason for buying does not exist, has changed, has been clear, and gradually stops;
7. Stop loss unconditionally if the loss exceeds 30%, regardless of any reason or excuse.
My stop loss is mainly in accordance with these seven articles. As long as there is one of them, I will stop immediately. For me, the stop loss is rigid. I will execute it when I reach the stop loss position. No matter whether it will rebound the next day or whether the market will pick up at that time, I will do it first.
Stop loss is wrong, what should I do if I rebound? I'll just buy it again. Stop loss is one thing, and buying it again is another. They are two independent logics and two independent operations, which cannot cancel each other out. The purpose of my doing this is to carry out my idea that stop loss is always correct and turn it into a habit.