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What does it mean to open a position with a stop loss?
Stop loss opening is to set a stop loss point before opening the position, and automatically stop the loss when it reaches the stop loss point.

Stop loss opening positions also correspond to back-to-back stop loss opening positions. Stop loss when opening a position is to put the opening point (or a certain area-medium-long line) in the original stop loss position, and then push the stop loss back a little with the opening point to avoid the threat of the main force deliberately sweeping away the stop loss order.

For most people who do futures, you should know such a sentence: open a position with your back to the stop loss. In fact, this sentence applies not only to the liquid market such as futures, but also to the stock market, except that the frequency of stock use is not as frequent as the trigger point in the futures market.

Extended data:

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 winning money and make up the position

If you understand and stick to the concept of "always standing at zero", then stopping winning can actually be regarded as a stop loss. As the saying goes, the apprentice will buy and the master will sell. Selling here includes stop loss and stop winning. In order to win well, we must first forget the purchase price and decide whether to sell only according to the current market trend. We are not afraid of the high road into the clouds, the heights are too cold, and we do not covet the comfort of sedan chairs. When it's time to go down, go down decisively. Secondly, it is to comprehensively use the various stop-loss methods mentioned later and treat stop-loss from the perspective of stop-loss.

There are two situations to cover positions. One is to make up the position passively, that is, never admit your mistake and touch the dark, which is a shortcut to expand the loss. The other is to take the initiative to make up the position, which is generally used when judging the irrational decline or reasonable fluctuation of the market. Active shorting should be shorting before the stop-loss point arrives. Once the stop-loss point is reached, it is still necessary to take the shot. Irresistible, never against the trend. Pay attention to the efficiency of the use of funds and don't be prepared to die.

Stop loss key point

(1) Stop loss point must be set.

Never start trading without setting a stop loss. There is no stock that only makes a loss. Investing in the stock market should always raise risk awareness. The minimum risk awareness is to determine how much you can lose before buying-set a stop loss point.

(2) Adhere to the preset stop loss point.

Few investors can exercise strict self-discipline. Because selling stocks at the stop loss point is a frank admission that you are wrong, and most retail investors are often too confident in their stocks and still take chances in the face of misjudgment.