No matter whether investors enter the market based on fundamentals or technical aspects, as long as the current fundamentals or technical aspects are contrary to the entry, investors should stop and leave, which is the "technical" stop loss. Whether it is the "technology" of fundamentals or the "technology" of technical analysis, the caliber of entry and exit, especially stop loss, is definitely the same, but in the opposite direction.

The advantage of "technical position" stop loss is that it can better filter out most of the "clutter", whether this "clutter" comes from short-term changes in fundamentals (news) or floating losses caused by repeated short-term price fluctuations. Its disadvantage is that it is difficult to find a really good "technical position". For fundamental factors, the quantification of factor factors is a difficult problem, but for the "technical position" of technical analysis, the real long-short watershed is not easy to find out.

Fixed amount stop loss

Fixed-amount stop loss refers to the way to leave the market when the loss reaches the "fixed" amount recognized by investors-the proportion of the total amount of funds in the account.

The advantage of this stop loss method is that the loss of each investment is limited to a certain range in advance (plan), and there will be no major risk hidden danger of unwilling to stop loss after serious losses, and there will be no unfavorable situation of floating losses but holding positions, which will eventually lead to explosion or even wear positions.

However, this method also has some defects. If the market suddenly jumps sharply, it may instantly break through the fixed stop loss amount, resulting in the actual loss exceeding the plan. In addition, if the winning rate of investors' trading is too low, the overall trading will also lead to overall losses. This fixed stop loss method requires that the winning rate of investors should not be too low, and investors must try to avoid holding varieties that may have a big gap trend.

Fixed distance stop loss

Some investors take the average cost plus a fixed distance-price fluctuation range as a stop loss after trading a certain variety. The advantages of this stop loss are the same as above, but the disadvantages still exist. If the input positions (lots) are too large, the planned stop loss amount will also be enlarged, which is different from the above-mentioned fixed-amount stop loss method. The above-mentioned fixed stop loss method, if the number of hands invested is too small, will lead to a very large reverse price change before the stop loss.

This is actually unnecessary, because once the price fluctuates sharply in the opposite direction, it already means that the error is getting more and more serious, and investors don't have to wait until then to stop the loss. This requires investors to do a good job in position management and invest in the right position to achieve good results, but this is a difficult problem for investors. Another drawback is that if there is such a big gap, the actual stop loss amount will greatly exceed the planned stop loss amount.

Similarly, this stop-loss method also requires that the winning rate of investors should not be too low, otherwise the account as a whole will still be in a state of loss.

"No stop loss"

Some investors don't like stop loss, or some positions have no concept of stop loss at all. He adopted the strategy of "no stop loss". "No stop loss" also has advantages and disadvantages. When the market is in the process of large-scale oscillation, or the price that investors participate in is just maintained in the early stage of the development of the position direction, "no stop loss" can generally come out in a "profit" state. However, if the market is in a unilateral trend and the positions held by investors are opposite to the actual direction of the market, then this "no stop loss" will lead to major losses, even short positions or short positions.

In fact, the "non-stop" strategy is irrational and investors should not do so. In other words, stop loss is necessary and it should be an important part of the trading plan.

Moving stop loss

In some cases, the floating profits in investors' accounts will be withdrawn, and even the profits may be completely withdrawn. When the floating profit begins to recover, investors need to adopt the strategy of moving stop loss (stop profit), that is, they can fall back to a certain extent at the highest profit point-investors can refer to the corresponding information or technical position and adopt the strategy of moving stop loss (stop profit). This can better protect the fruits of victory and not turn from profit to loss.