The highest skill for a stock to make money is the critical point. Whether it is the top or the bottom, there will be a critical point. This is a very important turning point, so we must grasp it well. As long as you find this turning point, you will grasp the trading point and leave the rest to patience. Therefore, before buying stocks, you must first set your own stop loss point, that is, the point you can bear, and how much money you can accept at most. Then strictly abide by it. Short-term stop loss point is generally 5%, medium-long line is 8- 12%, and long line is preferably 20%.
In fact, it is not difficult to set a stop loss point. The difficulty lies in whether it can be strictly implemented. Many people find various reasons at the stop loss point not to execute. Although the reason knows that it must be implemented, it will still be emotionally entangled. Although stop loss means losing money, which is equivalent to cutting meat, if you can't stop loss in time, you will probably lose your blood, so short pain is better than long pain. If you don't stop the loss in time, there will be greater losses.
Therefore, you can set the stop loss according to the specific interval. When the trend is 20-30% opposite to the operation, you can cut the meat and close the position; The second is to stop loss at a specific price, which can be a self-determined price or a support level. In practice, the stop loss point and the take profit point correspond to each other. By setting the take profit point, investors can make profits in time, the money can be put safely in the bag, and the income can be maximized. The stop loss point is to prevent investors from losing more. If the profit earned by taking profit and the loss of stop loss are three to one, there is a winning rate of 30%, which means there is no loss.