How to set an investor's take profit and stop loss points, whether you can buy stocks at the lowest point and sell stocks at the highest point, ultimately determines whether you are profitable or losing money. So today, Bian Xiao is here to sort out the stock-related knowledge for everyone. Let's have a look!
What do you mean, stop profit without stop loss?
In the process of financial transactions, there must be a problem of entering and leaving the market. Entering the market should be based on the principle of taking advantage of the trend, and leaving the market involves the problem of taking profit and stopping loss. It is suggested that short-term investors can consider adopting semi-automatic trading mode, and buy manually and sell mechanically through automatic trading software with stop loss function.
There are at least three reasons to buy slowly, namely, sell quickly, and sell as soon as it falls and breaks. Losses should be small, profits should be large, and how to coordinate needs to be adjusted according to personal circumstances.
Stop loss, also known as "cutting meat", refers to cutting meat in time when the loss of an investment reaches a predetermined amount to avoid further loss. Its purpose is to limit the loss to a smaller range when the investment goes wrong.
Stop loss point and take profit point of stock
Investors set a profit-taking point in order to maintain profits. After the stock continues to rise, more and more profits will be made in our accounts, and the greed of human nature will be infinitely magnified. We may have changed from the initial few percent to dozens of percent, that is to say, we just wanted to make a little money at first, and the bigger the stock rose, the more ideas we had.
I believe that as long as it is right to make money and sell, ordinary investors can set the profit-taking point as a specific price or percentage, and lighten their positions or sell them all at the psychological price, which are all better profit-taking methods.
Investors set stop loss points in order to protect capital. In the stock market, when the stock in your hand loses money, you must consider whether to stop the loss or increase the position. If you add positions, you may face more losses, or you may turn red after the market oversold and rebounded. Stop loss is to cut off the loss and start over.
Stop loss is like a gecko cutting its tail. At an appropriate time, you only need to choose to survive and flee, so as to avoid the loss that will cause the principal to shrink sharply. If the stock market wants to make a comeback, it must keep its principal.
What is the annualized rate of return of take profit?
The idea of taking profit and stopping loss is centered on a "stop". Thought determines action, and the methods of stock trading are fundamentally different. The key to profit is to find good opportunities. When an opportunity arises, seize it at the first time. If you miss it, let it miss it (the key to whether you can renew it). Find another opportunity. Seize the opportunity. When the opportunity has the signal of transformation, let it go the first time.
What does the annualized rate of return of take profit mean? In other words, when an asset reaches a predetermined annualized rate of return, it will take profits and be redeemed. The annualized interest rate at this time is the annualized rate of return of take profit. The annualized rate of return is only calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return, which is a theoretical rate of return, not a real rate of return. For example, the daily interest rate is 1/10000, and the annualized rate of return is 3.65_ (an average of 365 days a year).
What do you mean, stop profit without stop loss?
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