Simply put, the stop-loss price is the loss price that investors can accept in the transaction. Professionally speaking, stop loss means that when the loss of an investment operation reaches a predetermined amount of funds, the position should be cut in time to avoid the loss from expanding. In the market, the purpose of stop-loss operation is to minimize the loss or limit it to the smallest range when investors make mistakes in investment.

In other words, stop loss can help investors get more profits at a lower cost, and the same stop loss can also help investors save the day. Because the market is volatile and unpredictable, the risks in the market are inevitable. It is the uncertainty of the market that makes investors clear the necessity of setting a stop-loss price. Moreover, stop loss is always more important than profit, and it is the first principle of capital preservation in investment operation. The core of stop loss is not to let the loss continue to expand.

The methods for setting the stop loss point are:

It is not enough to understand the basic meaning of stop-loss price and the importance of stop-loss, but also to have practical skills, such as how to set stop-loss points on the way down and how many stop-loss points to set. Specific operational skills can be analyzed from the following aspects:

1, set according to the degree of loss. Under normal circumstances, investors should set their own losses according to the degree they can bear. When the current price is lower than 5% or 10% of the purchase price, the stop loss of speculative short-term buying is set to fall by 2%~3%, and the stop loss of long-term buying is set to fall by a relatively large proportion.

2. Set according to the current trend and your own trading direction. The current trend, position and support resistance are the key to analyze the market changes. Of course, you can also analyze the stop loss position, and you can judge whether to go long or short according to your own trading direction. If the price is close to the support line, you will decide to go long and then look for the low position, that is, the position of the stop loss point.

3. Stop loss must be reasonable and dynamic. The support line in the stock market is the key to dynamic stop loss, and the stop loss position is the content that needs attention. Of course, investors can use the channel support line to choose the position of the stop loss, because the stop loss will change according to the rising direction of the transaction, and each early support point is a stop loss point.

These can be understood slowly. Beginners should practice with the simulation disk before they are unfamiliar with the operation, find some experience from the simulation, and then apply it to actual combat when they have good results to avoid some unnecessary losses. I have been using Niugubao to simulate stock trading, and the effect is not bad. I hope I can help you, and I wish you a happy investment!