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What are the ways to stop losses in the stock market?
When the stock falls and the future situation is not clear enough, we need a reasonable stop loss to avoid capital loss. In the stock market, there are many ways to stop losses. There are four ways. The first one: the maximum stop loss method. This is the simplest stop loss method. When the stock drift reaches a certain percentage point, it will stop trading. The percentage depends on risk preference, trading strategy and operation cycle, such as the maximum daily loss of 2% and the maximum medium and long-term loss of 5- 10%. This percentage point is fixed and cannot be easily changed. It must be resolutely implemented.

The second type: horizontal stop loss method. In a certain horizontal time interval, set a stop loss target after the price rises. For example, stop loss can be set within 5 to 15 minutes after entering the market. Generally speaking, the horizontal stop loss method should be combined with the maximum stop loss method to fully control the risk. At the end of a horizontal movement, it is necessary to break through, so generally speaking, we should be careful to break through a fluctuation period, regardless of profit or loss, first observe and then find opportunities to invest.

The third type: moving stop loss, also called moving stop loss? Trailing stop? , is to follow the latest price and set a certain number of stop-loss points. Triggered only when the price change is beneficial to the position, it is the instruction set when entering the profit stage. Moving stop loss is a good trading tool, especially when the price fluctuates, which can guarantee profit. When the position becomes more profitable, by raising the stop-loss trigger price, traders can ensure that if the market moves in the opposite direction, most of the book gains can still be realized.

Fourth: the key psychological method of price stop loss. Psychological aspects include integers, historical highs and lows, recent prices of a large number of large orders, and the highest and lowest positions in a period of time may become key psychological aspects. It is usually necessary to make a review, pay attention to historical highs, closed areas and important index targets, which are all important references. We need to pay attention to these things during the day. Generally, we turn around at these points, or we really break through at these points and form a trend. In this case, we must bear the loss first, not after reaching or breaking through a certain point, then the impact cost will be relatively large. There are right and wrong stop-loss methods. At every stage of our subjective trading, we have a new understanding of the market and different views on stop loss. Ability to adapt to different stages of abilities and needs.