The stop price is a protection mechanism to avoid getting deeper and deeper. When the set stop loss price is reached, the system will automatically close the position.
Stop loss three taboos
Stop loss is called one of the prerequisites for investors to operate in the short term. 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 speculative method, 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 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.
Effective method of loss method
1, fixed stop loss method
This is the simplest stop-loss method, which refers to setting the loss at a fixed ratio and closing the position in time once the loss is greater than this ratio. Generally applicable to two types of investors: first, investors who have just entered the market; Second, investors in risky markets (such as futures markets). The mandatory effect of fixed stop loss is obvious, and investors do not need to rely too much on market judgment. The setting of stop loss ratio is the key to fixed stop loss. The fixed stop loss ratio consists of two data: one is the maximum loss that investors can bear. This ratio changes with investors' mentality and economic affordability. At the same time, it is also related to investors' profit expectations.
The second is the random fluctuation of trading varieties. This refers to the disorderly price fluctuation caused by the behavior of market trading groups without external factors. The setting of fixed stop loss ratio is to find a balance point between these two data. This is a dynamic process, and investors should set this ratio according to experience. Once the stop loss ratio is set, investors can avoid being knocked down by unnecessary random fluctuations.
2. Technical Stop Loss Method
More complicated is the technical stop loss method. It combines stop-loss setting with technical analysis, and sets stop-loss orders at key technical positions after eliminating random market fluctuations, thus avoiding further expansion of losses. This method requires investors to have strong technical analysis ability and self-control. The technical stop-loss method requires more investors than the previous one, and it is difficult to find a fixed model. Generally speaking, using technical stop loss method is nothing more than gambling with small losses to make big profits. For example, after buying in the lower track of the rising channel, wait for the end of the rising trend before closing the position, and the stop loss position is set near the relatively reliable moving average. As far as the Shanghai stock market is concerned, when the market index goes up, the 5-day moving average can maintain a short-term trend, and the 20-day or 30-day moving average will maintain a medium-long-term trend. Once the rising market starts, you can intervene at the 5-day moving average and set the stop loss near the 20-day moving average, so that you can not only enjoy most of the profits brought by the staged rising market, but also get out in time when the head is formed to ensure profits. At the beginning of the rising market, the distance between the 5-day moving average and the 20-day moving average is very small. Even if the market is misunderstood, the stop loss near the 20-day moving average will not be too big. For another example, after the market enters the consolidation stage (market), it usually presents a box or a convergent triangle shape, and the deviation rate between the price and the medium-term moving average (generally 10-20 antenna) gradually narrows. At this time, investors can intervene at the maximum deviation rate of technology and set a stop loss position at the maximum deviation rate of the market. In this way, you can get a lower price and a higher price. Once the deviation rate of the price from the medium-term moving average is re-amplified, it means. At this point, if the price turns downward, investors should leave decisively. The market is relative to the unilateral market. At the beginning of the market, the market is unstable and fluctuates greatly, so traders can boldly intervene. In the later stage of the market, it is necessary to appropriately narrow the stop loss range and improve the insurance coefficient.
3. Unconditional Stop Loss Method
Regardless of the cost, the stop loss on the road is called unconditional stop loss. When the fundamentals of the market have undergone a fundamental turning point, investors should abandon any illusions and fight at no cost in order to preserve their strength and choose the right opportunity to fight again. Fundamental changes are often difficult to reverse. When the fundamentals deteriorate, investors should make decisive decisions and cut their positions out.
To sum up, stop loss is a necessary means to control risks. How to make good use of stop-loss tools, investors should have their own style. In the transaction,
For investors, it is very important to grasp the overall position and trend of the market. Stop loss should be used more in the high-priced circle, less or no in the low-priced circle, and it depends on the market movement trend in the middle-priced circle. It is the only way for investors to take advantage of the situation and make good use of the stop loss position.
When the market is fierce, investors will be confused in judgment and decision-making, and they will not be able to issue a stop loss order in time. Once they miss the preset stop loss position, it will be difficult to implement the stop loss. No matter how big or small the loss is, as long as it reaches the preset position, it should be implemented immediately without delay. The effect of stop loss depends largely on the self-discipline of investors. Only by strictly observing discipline and stopping losses in time can we continuously improve our investment ability in trading.
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