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The reasons for setting take profit and stop loss and the setting principle of take profit and stop loss 1. Stop loss is the principle to be adhered to. Stop loss, expressed as stoploss in English, means to stop loss. In margin trading, stop loss is even more important, because small fluctuations may cause you to lose a large area or even all losses. However, some investors may not agree with stop loss, because every time they can no longer bear the loss, they have no choice but to stop the loss. As a result, the price reverses every time they just stop the loss, and they often regret it. So let’s take a look at what investment masters think about stop loss. "Financial tycoon" and internationally renowned investment guru George Soros recalled in the book "Soros on Soros" that his father taught him some valuable experiences about survival skills: "It's okay to take risks, but when When taking risks, don't risk your entire fortune. "I want to survive and I'm not willing to take devastating risks," he told reporters after becoming famous in 1992's "Sterling Storm." The second rule is to ignore all other rules as long as they make the first one true. This is a famous saying of Buffett. Cutting losses allows you to continue to survive. Renchao Cao, a famous Hong Kong investor, "has increased its value by 40,000 times in 40 years." He came from a "grassroots" background without any dazzling academic qualifications or titles, but he eventually became a billionaire. What he invests in is the familiar stock market, gold, and real estate. His most important quote is "Always stop losses and never take profits." If you are a novice in the investment market, please do not doubt the methods of the above masters; if you already have some investment experience, please follow them. What happened to the investor I mentioned at the beginning who always lamented? It shows that his stop loss is pointless and unscientific. Let’s introduce what the scientific method is.

Stop-loss principle Stop-loss principle Stop-loss principle 1. Be brave enough to admit your mistakes to the market. No one can be right every time. It is normal to be wrong. Admitting mistakes is not a shameful thing. On the contrary, it is the basis of your success. Those who run away when the situation is not right are the ones who survive the longest.

2. The stop loss shall not exceed 10% of the principal. All stop losses must be carried out under this principle to ensure that there is still a chance to continue fighting after the stop loss, otherwise you will have no chips to play.

3. Always stop loss and stop profit (except for program trading). The meaning of this sentence is that if you lose, stop the loss, and if you make a profit, close the position. You will never make big money. Maybe after N times, your profits will be swallowed up by the stop loss. Use stop loss to protect your principal and profits.

2. Stop loss method Stop loss method

Stop loss method 1. Fixed stop loss. That is, you enter the market after being optimistic about the general direction. When you enter, you set a stop loss according to a certain ratio. This ratio is within 10%. Whether to set 1% or 3% depends on the volatility of the market you invest in.

2. Conditional stop loss. That is, stop loss when certain conditions are met. Generally, conditional stop loss is technical stop loss. Some people think that indicator stop loss can also be used, but I don't agree, because the existing indicators do not meet the requirements after testing. If you stop loss according to the indicator, you will end up losing money.

There are two main types of technical stop loss methods we talk about.

(A) Form stop loss form Stop loss form Stop loss form Stop loss form Stop loss form is based on the support or pressure formed by various price forms in technical analysis, and the stop loss position is placed on the pressure Above (short sellers) and below support (long sellers), generally do not choose integers and set a few more points to avoid rapid intraday price hits.

1. Trend lines include trend lines and channel lines, which are important ways to express trends. If the price moves in the opposite direction to the trend line, the previous trend may change, which can be used as a stop. basis for loss.

2. Reversal patterns include head and shoulders, triple top and triple bottom, double top and double bottom, V-shaped, diffuse trumpet, etc. Use a relatively high or low price before the price forms these patterns as the basis for stop loss.

3. The continuous pattern is the consolidation in the price trend, which means taking a short rest before moving forward, such as flag, rectangle, triangle, wedge, head and shoulders, etc. Also use a relatively high or low level before the price forms these patterns as the basis for stop loss. For a detailed introduction to the form, you can refer to the book "Technical Analysis of Futures Markets". Author: (U.S.A.) Written by Murphy, translated by Ding Shengyuan (B) K-line combination, stop-loss line combination, stop-loss line combination, stop-loss line combination, stop-loss line combination, most of the stop-loss K-line combinations can be transformed into the forms mentioned in A, and we will not go further here. In detail, the stop loss method is the same. For a detailed introduction to K-line combinations, please refer to the book "Japanese Candlestick Chart Technology". Author: (US) Written by Steve Nissen, translated by Ding Shengyuan.

3. Regarding the stop loss and stop loss of a position addition order

1. The stop loss method of a position addition order is basically the same as the stop loss method of opening a position for the first time. The stop loss amount of an order cannot exceed 10% of the total funds. The difference is the mentality. Because the impact of the same fluctuations on profits and losses increases after adding a position, the stop-loss principle should be adhered to at this time. A slight negligence may cause investors to fall short or be eliminated miserably.

2. The main idea of ??the idea of ??stop loss but not profit is based on the guiding principle of "real profit depends on the long term".

When the transaction order is completed, the stop loss is set immediately. If the stop loss is hit, you will be out and wait for the opportunity to enter. If you make a profit after the transaction, the stop loss level will be raised after the price changes in a favorable direction. As for when to raise it, you can refer to the trend. The line increases or increases with the pattern. This order will not be eliminated until the market breaks through the stop loss. This is stop loss but not profit. Loss during margin trading is like being bitten by a crocodile on the leg. Don't try to pull your leg out of the crocodile's mouth. You may get away with it once, but in the end, the more you try to pull it out, the tighter the crocodile bites you. It bites wherever you move until you can't move anywhere. Therefore, if your leg is bitten by a crocodile, you will only "break your leg". Finally, I wish you a smooth transaction.

Thank you and hope to adopt it