Stop loss is an idea, a plan and an operation. In the high-risk stock market, we must survive before we can talk about further development. The key function of stop loss is to make investors survive better. So what does the stop loss point mean? What is the appropriate stop loss point?

1. What does the stop point mean?

Stop loss point refers to the maximum allowable loss of a stock market trading position. Once the loss limit is reached, traders must close or reduce their positions to prevent the loss from expanding.

Stop loss is a necessary means to control risks. How to make good use of stop-loss tools, investors should have their own style. In trading, it is very important for investors to grasp the overall position and trend of the market. Stop loss should be used more in the high-priced circle, less or no in the low-priced circle, and it depends on the market movement trend in the middle-priced circle. Taking advantage of the trend and making good use of stop loss points are the only way for investors.

Second, how much is the stop loss point?

1, the setting of stop loss point mainly depends on your operation: short line, middle line and long line.

2. Stop loss setting should not be adjusted downward with the decline of stock price, as long as it falls below, it should come out immediately.

3. Generally speaking, the short-term setting is below 2% of the purchase price; The center line can be near 10%; The long line is wider, 30-50%

4. Remember that principle is principle. If it is fixed, it must be implemented in order to create greater profits.