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.

An important difference between stock investment and gambling is that the former can limit the loss within a certain range through stop loss and maximize the return on success. In other words, a stop loss makes it possible to get a bigger profit at a smaller cost. The fact that there are countless blood in the stock market shows that an unexpected investment mistake is fatal enough, but stop loss can help investors save the day.

Stop loss order:

First, the stop loss of broken stocks

For such stocks, investors should not only make up their positions, but also resolutely implement the stop-loss discipline in the case of the first break, and wait and see until the whole upward trend is effectively established before eating.

Second, the volume and Long Yin's stop loss.

If the stock you hold is in the initial stage of decline just after breaking through the 20 or 30-day moving average, and you are in a short-term operation style, then investors should come out first to avoid risks. Generally speaking, this stock appears for the first time from the daily K-line, and has a more violent decline in the later period. It is recommended to leave first.

Third, the downward relay stop loss

From the K-line combination, the first cross star appears in the continuous decline, which is usually the relay performance of the decline. Investors should sell at a high level in the next day's rebound and wait patiently for the stock price to be effectively lowered before intervening. If a stock continues to fall by 30% or even 50%, such stocks tend to rebound strongly. Therefore, investors should not blindly cut the meat, but make up the position to spread the cost, and rebound to the previous high point in the future, or leave the market near the technical back pressure line on the 30 th. Pay attention to strengthen band operation, realize your own losses and increase profits.

Fourth, Changzhuang shares fell below the stop loss of the medium and long-term technical trend line.

For example, the variety fell below the 30-day and 60-day moving averages for the first time, and the early rising channel formed for more than 3 months. Some market funds saw the rhythm of the main force, and ordinary short-term trading made the main force have a strong desire to wash dishes. We might as well stop and leave first. Once the stock price falls to the half-year line or the annual line, the main force will try its best to support the market again, and when it gradually rises again, it will be decisively repurchased. Often these are the long-term performance of digging holes and washing dishes in the village to reach a new high.

How to set a stop loss point

Randomly find 100 people in the stock market. How should you ask him to set a stop loss point? 80 people will tell you to stop loss decisively if you lose 5% or 10%. Of course, there are other stop-loss methods, but most of them are wrong.

When setting a stop-loss point, you can't speak in percentile, but in fact, more and more novices in the stock market are accepting the wrong stop-loss methods passed by some wrong articles. Let's illustrate, for example, that you can't use percentiles when setting a stop loss point with a chart.

The above picture assumes intervention at the red arrow, and the decline exceeds 5% after four days of intervention. According to some people's stop-loss methods, stop-loss should be "decisive" at this time. Anyone who knows a little about graphic analysis can see that two consecutive bald K-lines at the green arrow represent bull resistance, and the trading volume is shrinking. Did the cat say in the last article that the decline must be reduced before it can stop? Note that the lowest point of the stock price has touched the support level of the previous five consecutive trading days, which has fully explained: stop. Stop loss at this time is to sell at the floor price.

The only correct way to stop loss is to analyze the graph, and the only reason to stop loss decisively is that in the upward trend, the stock price suddenly fell sharply, breaking the upward trend and staying away from the support level.

Look up for resistance, look down for support, and don't care how much you earn or lose. Earning 20% or 50% is no reason for you to sell stocks. The only reason to sell the stock is that the stock price has reached a strong resistance level. The only reason to stop loss is that you can't see the support level when standing on the mountain, which has nothing to do with how much you lost.