Current location - Trademark Inquiry Complete Network - Futures platform - What is a stop loss?
What is a stop loss?
Q: Xiao Bai-What is a stop loss?

A: Me: Stop loss means thinking about how to sell the lost position. When thinking about stop loss, we should think about several questions. Will the loss-making positions continue to lose money? If so, we will resolutely clear the positions; If you think it will rebound, hold it well, or even buy it at a low point to spread the cost. If you haven't figured out your expectations, then figure them out first. Some people stop loss because there is a mistake in judgment strategy, so they stop loss.

Of course, some investors will set different stop-loss lines for their positions, and this specific need varies from person to person. Stop loss is not easy and difficult. It requires the unity of knowledge and action. Stop loss is also to better ensure that you don't lose money.

Some netizens summed up the consequences of not stopping, and the loss of 10% increased by 1 1%. 20% loss, 25% return; Loss of 30% increased by 42.86%; Loss of 40% increased by 66.67%; 50% loss, 100% return to capital; 60% loss, 150% return; Loss of 70% increased by 233.33%; 80% loss, 400% return; 90% loss, 900% return; 100% loss, goodbye, see you at the next rooftop!