First, in the consolidation market, take the technical support level as the reference stop loss point. The common technical forms are box type, head and shoulder type, triangle type, M type and so on. When a stock (market) forms the above form, the longer it takes to build, the greater its effectiveness once it is technically broken. First of all, technical factors should be considered when setting the stop loss point. 1. When the upward trend has been established, take the moving average as the stop loss point. Generally speaking, EMAs are divided into short-term, medium-term and long-term EMAs, and different EMAs can be set according to different needs, such as 5, 10, 20, 30, 60, 120, etc. Short-term, you can use the 5-day moving average as a stop loss. If it is a long-term buyer, you can refer to the 60-day moving average as a stop loss point. For most investors, the mid-line operation is the mainstay, and the 20-day moving average is more important in practical application. When a stock (market) enters the rising stage after a long-term consolidation, it is necessary to focus on it.
Pay attention to the support of the 20-day moving average. If the stock price has been above the 20-day moving average and the 20-day moving average is on the rise, there is no need to worry about a small correction. You can keep raising the stop loss point along the 20-day moving average. In the process of rising, the stock price callback will always stop above the 20-day moving average. Once the stock (market) loses its upward momentum, the stock price will start to pull back or sideways, and the 20-day moving average will gradually turn from rising to flat. At this time, we should be highly vigilant. Once you effectively fall below the 20-day moving average and can't stand up again within 3 days, you should stop immediately.
Second, the setting of stop loss point should consider the factors of the market.
A. When the market plummets, the stop loss point is lower than usual. Individual stocks are hard to get rid of, and most people are deeply involved. At this time, patience is golden.
B. the market is overcast all the way, and it is possible to take a bear market. Stop loss point should be high, and if you can't rebound, you will admit your mistake.
C. If the market is consolidating or in a strong position, the stop loss point can be relatively low, because it is more likely to rise. If the market is mainly the stock market, you can consider the impact of the broader market less.
Third, the setting of stop loss point should consider the timing of entering the market.
A. If you buy after it has more than doubled, the stop loss point should be high, even if it is shocked, you will have no regrets. Because if you really turn around at this time, it will be difficult to return to this price in a year or so.
B. if you enter from the beginning, you can set the stop loss point lower. Because the main force may wash the dishes after pulling up, since you bought it and are optimistic about the medium and long lines, then accompany the main force to wash the dishes.
Fourth, stop-loss points should be set for different types of stocks.
A. Stop loss points for blue-chip stocks, high-priced stocks and large-cap stocks should be set higher. Because the main control ability is relatively weak, it is higher than poor performance stocks, low-priced stocks and small-cap stocks. The decline of the former often appears in the form of yin decline, and the speed is slow; Similarly, the rate of decline is slow and the rate of rebound is slow. Therefore, once there is a turning signal, it is best to give up the luck and stop the loss in time.
B the stop-loss points of poor-performing stocks, low-priced stocks and small-cap stocks should be set relatively low. The latter are all rising fast and falling fast. In order to raise the cost of holding funds by other investors, it is not surprising that the main force has made great efforts to wash positions and continue to fall. Because the share capital is small and active, in this case, the stop loss point should be set relatively low.
It should be emphasized that stop loss is only a kind of capital risk management and position control. Stop loss is a correction of buying mistakes. Whether a good choice of stop loss and buy point is optimal is closely related to the initial position ratio and the operation of adding and reducing positions. In fact, there is no fixed stop loss formula. It is important to comprehensively balance various factors according to the specific situation and set the stop loss point according to your risk preference. After setting the stop loss point, you must have the determination and perseverance to implement it. Stop loss price is set to overcome the luck and hesitation in human nature and avoid emotional interference. Of course, the stop loss point is not omnipotent, and there are mistakes, which requires us to have a normal heart. If you really achieve the above points, then you are not far from victory!